Tonight, the Fed chair's warning on tariffs and the economy, a future of higher prices and

slower growth, those concerns stoking a market sell-off.

Then Maryland Senator Chris Van Hollen in El Salvador fighting for the release of a wrongly deported

man as another judge challenges the White House for defying court orders.

And Republicans weighing the

unthinkable attacks hike for the wealthiest Americans as the 11th hour gets underway on this

Wednesday night.

Tonight definitely requires a deep breath. Good evening once again. Welcome to the nightcap. I am Stephanie Ruhl, and it is day 87 of the second Trump administration. This afternoon during a speech in Chicago, Federal Reserve Chair, Jerome Powell, gave a stark assessment of where the economy may be headed as the White House's aggressive tax policies take effect.

Level of tariff increases announced so far is significantly larger than anticipated, and the same

is likely to be true of the economic effects, which will include higher inflation and slower

growth. Tariffs are highly likely to generate at least a temporary rise in inflation.

The inflationary effects could also be more persistent.

Without price stability, we cannot achieve the long periods of strong labor market conditions

that benefit all Americans.

Powell added that it could be incredibly difficult for the Fed to meet its goals of keeping

inflation in check and promoting full employment.

As he made it clear, there would be no riding to the rescue that the Fed is still in wait

and sea mode because White House's tax policies are nowhere near settled.

Powell's remarks accelerated a stock sell-off

this afternoon with all three indices closing down. But there was something else at work today.

Tech stocks were hit hard after chipmakers warned a rise in costs. Guess why? The escalating

U.S.-China trade war. While all of this was going on, the president was meeting with Japanese

...