#PowellRemarks

Recent remarks from Federal Reserve Chair Jerome Powell emphasize a cautious "wait-and-see" approach to monetary policy, primarily driven by uncertainty surrounding the impact of new tariffs. While the Fed held interest rates steady, they still project two rate cuts by the end of 2025, although this outlook is highly conditional on how tariffs affect inflation and economic activity.

Powell highlighted that tariffs are likely to push up prices and weigh on economic growth, creating a "challenging scenario" where both inflation and unemployment could rise. Despite current inflation being near the Fed's 2% target and a solid job market, the central bank is taking its time to assess the full "pass-through" of tariff costs to consumers and the broader economy, indicating that any rate adjustments will be data-dependent and made only after clearer signals emerge over the coming months.