#PowellRemarks

Federal Reserve Chair Jerome Powell delivered a cautious message amid rising economic uncertainty. Addressing the impact of new tariffs introduced by the Trump administration, Powell warned they could push inflation higher and slow economic growth. Despite growing calls—including from the White House—for interest rate cuts, Powell made it clear the Fed is not rushing to ease policy prematurely.

He emphasized the importance of stable inflation expectations and signaled that the Fed would wait for more decisive economic data before adjusting rates. The markets reacted sharply—the S&P 500 dropped 6%, and the Nasdaq fell over 11% in two days, officially entering bear territory.

With JPMorgan raising the chance of a U.S. recession to 60%, Powell’s remarks highlight the Fed’s delicate balancing act: managing inflation while supporting growth, all amid global uncertainty.

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