Jerome Powell, chair of the Federal Reserve, stated there would be no immediate rate cuts as inflation remains high amid economic uncertainty. During a briefing, he discussed the balance between weaker growth and higher inflation, which canceled each other out in their projections. Powell emphasized the lack of significant changes in forecast indicators, despite ongoing uncertainty. He also addressed questions regarding the impact of President Trump's tariff policies on inflation forecasts, indicating that these tariffs influenced the uptick in inflation expectations and became a crucial part of their discussions.
"You come in and you see, broadly speaking, weaker growth, but higher inflation. And they kind of balance each other out."
"There's just not a big change in the forecast, there really isn't. Modestly, meaningfully higher growth and meaningfully higher inflation call for different responses."
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