Jerome Powell has only been serving as Chairman of the Federal Reserve since February, but he's already having to contend with some unusual circumstances. This week, he appeared before Congress to speak about the state of the economy.

Lawmakers wanted to know what America’s top central banker thinks about President Trump's steadily escalating trade war. Since January, Trump has imposed or threatened to impose tariffs on 10,000 different products the U.S. imports from Mexico, Canada, Europe, and China. Those countries are retaliating with tariffs of their own.

Powell avoided commenting on Trump's tariffs, but did share the view of many economists on trade: "In general, countries that have remained open to trade that haven’t erected barriers including tariffs have grown faster, had higher incomes, had higher productivity and countries that have gone in more protectionist direction have done worse", said Powell. "I think that’s the empirical result."

This week on Money Talking, Ilya Marritz speaks to Neil Irwin of The New York Times on America’s growing protectionism, and how the Fed is preparing for it.