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Fed Officials Blast Trade Protectionism

  • Dudley says in Brazil that ‘protectionism is not the answer’
  • Powell says best approach is to help those displaced by trade
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Trump Says U.S. Will Slap Tariffs on Steel, Aluminum
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Federal Reserve Chairman Jerome Powell and one of his top lieutenants praised the benefits of a global economy without trade restrictions on a day when President Donald Trump announced plans to slap tariffs on imported steel and aluminum.

Responding to questions Thursday from the Senate Banking Committee, Powell said a system where goods and services flow freely is a net positive for many countries, though the benefits aren’t spread equally. New York Fed President William Dudley was even more explicit in his criticism of trade barriers, saying in a speech in Brazil that “protectionism is not the answer.”