Jerome Powell, Chairman of the U.S. Federal Reserve, has cautioned that ongoing tariff policies could hinder the Fed's ability to achieve its goals for the year. Speaking recently, Powell emphasized the high level of uncertainty surrounding tariffs and their potential impact on the economy. "If tariff policies continue, achieving this year's goals may be difficult," Powell stated, signaling a cautious approach to proactive interest rate cuts. He suggested that the Fed will monitor trade negotiations closely and respond swiftly to any emerging problems as more data becomes available. The Fed's current stance indicates a reluctance to lower interest rates preemptively due to the unpredictable nature of the trade environment. A sustained trade war could disrupt supply chains, increase inflation, and ultimately slow down economic growth, making it harder for the Fed to maintain price stability and full employment. ```
