Powell spoke at a volatile time, with stock markets and bond yields both declining in the wake of Trump's whipsaw announcements of steep tariffs.

With US stocks unstable, consumer confidence in the economy plunging and whispers of a potential recession growing less muted, the economy under President Donald Trump's second term has been about as stable as a recovering addict's first week back on blow.

Trump administration officials shifted tone this week to acknowledge that markets and consumers might suffer losses as the economy adjusts to the rollout of the White House economic agenda. President Donald Trump told the nation during his joint address to Congress on Tuesday that his aggressive tariff policies would cause “a little disturbance” a day