#PowellRemarks Here's what's happening:

- Tariff Rates: The total tariff rate on China will rise to 54%, while the European Union will face a 20% rate, Japan 24%, India 26%, South Korea 25%, Taiwan 32%, Thailand 36%, and Vietnam 46%.

- China's Retaliation: China has announced an additional 34% tax on goods imported from the US, escalating the global trade war.

- Economic Impact: Powell believes the tariffs may lead to structural consequences that could slow down economic growth, emphasizing the Fed's responsibility to maintain long-term price stability.

The situation has created uncertainty in financial markets, making monetary policy decisions more complex. Powell mentioned that if the economy slows down, a rate cut may be considered, but rising prices complicate this decision. Meanwhile, Trump has publicly urged Powell to cut rates, saying "Now is the perfect time to cut rates. Don’t be late!"

What's Next?

The Federal Reserve is expected to keep interest rates unchanged in the short term but may consider rate cuts later in 2025, depending on inflation and labor market data. Some experts predict a 25-basis-point cut in June, while others suggest the Fed may not make any moves at all due to the tariffs' impact on inflation.