Federal Reserve Chairman Jerome Powell on Wednesday declined to comment on the upcoming Supreme Court decision that could shape the future of President Donald Trump‘s trade agenda.
“It’s not something I want to address here,” Powell said during a press conference following the central bank’s December interest rate decision. “It’s before the courts and we don’t think that we help matters by trying to engage,” he added.
When asked how the Fed would incorporate potential changes to growth and inflation should the nation’s highest court strike down Trump’s tariffs, Powell said he couldn’t speculate.
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“I really don’t know,” Powell said, adding, “it would depend on a whole bunch of things we don’t know.”
Powell said the central bank is carefully watching tariff-related inflation pressures, which Fed officials expect to be temporary but still significant enough to factor into policy discussions.
“A reasonable base case is that the effects of tariffs on inflation will be relatively short-lived. Effectively, a one-time shift in the price level,” Powell said.
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“Our obligation is to make sure that a one-time increase in the price level does not become an ongoing inflation problem,” he added.
Since Trump announced his “Liberation Day” tariffs in April, tariff revenues have surged from $23.9 billion in May to $28 billion in June and $29 billion in July.
Total duty revenue reached $215.2 billion in fiscal year 2025, which ended Sept. 30, according to the Treasury Department’s “Customs and Certain Excise Taxes” report.
So far in fiscal year 2026, which began on Oct. 1, the U.S. has collected $69.4 billion, according to the latest numbers published by the Treasury Department.
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Meanwhile, the Trump administration maintains that aggressive tariffs are necessary to confront what he considers years of unfair global trade, promote U.S. national security, pay down America’s staggering debt and generate $2,000 dividends for low- and middle-income Americans.
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