Yellen Warns Trump on Proposed Import Tariffs

U.S. Treasury Secretary Janet Yellen has cautioned that President-elect Donald Trump's proposed broad import tariffs could hinder efforts to manage inflation and increase costs for both consumers and businesses. Speaking at a Wall Street Journal CEO Council event, Yellen warned that such tariffs could lead to significant price hikes and adversely affect the competitiveness of various sectors in the U.S. economy. She also highlighted concerns about the nation's fiscal sustainability, particularly regarding the expiration of Trump’s 2017 tax cuts and the potential need for Congress to address related costs. Yellen emphasized the necessity of maintaining an independent Federal Reserve, warning that politicizing the institution could undermine public trust in economic governance. The implications of these policies pose challenges for balancing economic growth with responsible fiscal measures.