Federal Reserve Chairman Jerome Powell addressed President Trump's new tariffs, highlighting concerns over inflation and economic growth. He noted that the tariffs are likely to cause a temporary rise in inflation but warned that effects could be more persistent. Powell indicated a cautious stance, stating that the Federal Reserve will adopt a 'wait and see' approach until the impact of tariffs becomes clearer. He also mentioned elevated risks for higher unemployment and inflation while emphasizing the importance of anchoring long-term inflation expectations.
While tariffs are highly likely to generate at least a temporary rise in inflation, it is also possible that the effects could be more persistent.
It is too soon to say what will be the appropriate path for monetary policy.
The country was facing elevated risks of both higher unemployment and higher inflation.
The central bank's focus will be on keeping long-term inflation expectations well-anchored.
Collection
[
|
...
]