Stock markets fell after Federal Reserve Chairman Jerome Powell said that the Trump administration’s tariffs would most likely lead to even higher inflation and slower growth.

The stock market took another tumble Wednesday amid a new warning from Federal Reserve Chair Jerome Powell about the impact of President Donald Trump’s global trade war. Trump is defending the tariffs,

The administration is implementing major shifts in economic policy, and trade is now at the center of it,” Powell said. “These changes are likely to push us further away from our goals.” He explained that the tariffs announced by Trump turned out to be significantly higher than expected — and the economic fallout will likely be just as steep,