Fed Chair Warns Tariffs May Affect Inflation Control

Federal Reserve Chair Jerome Powell highlighted concerns that President Trump's tariffs could hinder the Fed's ability to control inflation, expressing that the new tariffs will likely delay progress in reducing inflation rates. In a related economic context, Moody's Ratings pointed out that these tariffs, along with evolving U.S. policies, present risks to South and Southeast Asian companies, particularly in sectors like automotive and steel. Companies like Tata Motors and Samvardhana Motherson International face increased costs due to these tariffs, impacting their U.S. operations. Despite these challenges, Indian IT giants like Infosys and TCS are noted to be well-positioned to handle increased costs due to their robust profitability, although changes in U.S. immigration policy could affect their labor pool. These firms have been increasing onshore hiring to mitigate risks. Overall, the impact of the tariffs will vary across different industries, with specific strategies being employed to mitigate the effects.