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President of the Federal Reserve, Jerome Powell declared that protectionism can affect economic growth and productivity just as the United States intensifies trade tensions with China . European Union and others of its partners.
Testifying on Tuesday before the Senate Banking Committee, Powell answered a question about the economic impact of President Donald Trump's duties .
"In general, the countries that remained open to trade that did not impose barriers, including tariffs, grew faster. have had higher income, higher productivity, "he said. "Countries that have adopted a more protectionist approach have improved."
Powell was careful not to specifically criticize Trump's trade policies, which included the imposition of tariffs on imports in an effort to reduce barriers to US exports. In recent months, the White House has applied tariffs on shipments of high-tech products from China, as well as on steel and aluminum from most of its trading partners.
"Trade is really a matter of Congress and Congress has delegated some of it to the executive power, but it has important effects on the economy, and I think that when there are long-term effects, we should talk about it, "he said.
will increase fees
Powell was inclined to continue to gradually increase the rates in a context of strong economy, but with risks still difficult to measure. The content of Powell's presentation to the Senate Banking Committee suggests that the Federal Reserve will increase the cost of money at least twice in the rest of the year, a situation that helped lift the dollar against the major currencies of the world, including Mexico.
Prepared with information from Bloomberg and Esteban Rojas
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