#PowellRemarks

Jerome Powell: The US economy is strong despite inflationary pressures and future risks

In his recent statements during the live meeting, Federal Reserve Chairman Jerome Powell emphasized the importance of maintaining monetary policies to ensure that rising prices do not turn into long-term inflation. He clarified that the US economy is still in a good position despite growing risks and uncertainties in the markets, especially amid sudden changes in trade policies and rising tariffs.

Multiple messages balancing concern and confidence:

Powell highlighted that the new tariffs have come in higher than expected, reflecting additional pressures on the economy, particularly regarding prices which may experience a temporary increase. However, he reaffirmed the Fed's commitment to preventing this increase from becoming sustainable inflation, noting that most long-term inflation indicators remain stable.

Economic challenges under a new trade policy:

Powell pointed out that tariffs are one of the main factors contributing to rising prices, which has raised concerns among markets and investors. He also explained that progress towards achieving the inflation target of 2% has recently slowed, reinforcing the need to carefully monitor data before making any new decisions regarding interest rates.

Unemployment and employment... another side of the coin: