Jerome Powell, chair of the Federal Reserve, assessed current economic conditions, indicating a significant level of uncertainty, largely attributed to President Trump's tariffs. The Fed kept interest rates unchanged for the second consecutive meeting, while maintaining its forecast for two rate cuts by year-end despite predictions of heightened inflation and reduced growth. Powell's comments reflected growing concerns over how tariffs could impede efforts to lower inflation, reinforcing the complexities faced by the Fed in adjusting monetary policy. This uncertainty, analysts suggest, could also be part of Trump's negotiation strategy in international relations.
"Powell indicated that uncertainty is exceedingly high, indicating how Trump's economic policies—specifically his tariffs—could have lasting effects on inflation and growth rates."
"Jerome Powell's assessment is crucial as the Fed sticks to the forecast of two rate cuts for the year, despite projecting slower growth and higher inflation."
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