The Federal Reserve, under Jerome Powell's leadership, has significantly reduced inflation from a peak of 9.1% to 2.4%, nearing its 2% target. However, ongoing concerns about the long-term impacts of tariffs from Trump's administration loom large. Powell highlighted that current low inflation could either be temporary or persistent based on tariff impacts. Meanwhile, Fed Vice Chair Michelle Bowman proposed that if inflation remains controlled, a policy rate cut might be warranted sooner rather than later to support the labor market. The Fed has maintained its rate pause despite pressures and criticisms, particularly from Trump.
"Powell's comments indicated concern about the long-term impacts of Trump’s tariffs, suggesting that while inflation is currently low, it may have persistent effects depending on tariff implementation."
"Fed Vice Chair Michelle Bowman hinted at the possibility of rate cuts soon, emphasizing the need to support a healthy labor market and bring policy rates closer to neutral."
Collection
[
|
...
]