Federal Reserve Chairman Jerome Powell addressed the central bank's monetary policy, highlighting increased uncertainty in the economic outlook and revised inflation forecasts. Following Trump's return to power, the Fed's GDP growth estimate dropped from 2.1% to 1.7%, signaling a loss of economic momentum. Inflation projections also rose, reflecting the ongoing impact of tariffs. Powell emphasized that navigating these challenges while maintaining employment stability is a complex task, underlining the significance of the terms "uncertainty" and "transitory" in the Fed's current policy discussions.
The economy is losing steam: Federal Reserve Chairman Jerome Powell noted increased uncertainty in the economic outlook, driving down GDP growth forecasts amid rising inflation projections.
Powell acknowledged the impact of tariffs on inflation forecasts, stating, "We think inflation has started to rise now, partly in response to the tariffs."
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