📢 Powell’s Latest Remarks: Inflation, Tariffs & Uncertainty Ahead
Federal Reserve Chair Jerome Powell’s recent speech painted a cautious but clear picture of the U.S. economic outlook. While the economy remains resilient—with solid growth and a balanced labor market—Powell acknowledged that progress on inflation has slowed, with core PCE inflation still hovering above the 2% target.
A key concern? Rising tariffs. Powell warned that these could lead to higher inflation in the coming quarters, especially as the full impact of new trade policies unfolds. While long-term inflation expectations remain anchored, short-term pressures are building.
The Fed is taking a wait-and-see approach, emphasizing flexibility amid policy uncertainty. Powell reiterated the Fed’s commitment to its dual mandate: maximum employment and price stability.
With no immediate changes to interest rates, markets are left watching for clearer signals. Will inflation ease, or will tariffs force the Fed’s hand? One thing’s certain—monetary policy is entering a delicate phase.
