Jerome Powell, Chairman of the Federal Reserve (Fed), has made important statements about the US economy and monetary policy. Here are some key points about his recent observations:
- *US Economy*: Powell states that the economy remains in good shape, but the impact of the policy changes implemented by the Trump administration is still uncertain.
- *Inflation*: He emphasized that the 2% inflation target will not change, but Fed policymakers would reassess the long-term goals statement and the monetary policy strategy.
- *Tariffs and Inflation*: Powell blamed the Trump-era tariffs for new inflationary concerns and stated that the labor market is strong, but tariffs may raise short-term inflation expectations.
- *Interest Rates*: He indicated that the Fed does not need to act hastily to adjust interest rates and it is expected that rates will be cut three times in 2025.
- *Monetary Policy Review*: Powell mentioned that the Fed has begun the second round of a five-year review of its monetary policy framework, with results expected by the end of summer.
Some of Powell's statements were made at important events, such as¹ ² ³:
- *US Monetary Policy Forum 2025*: Powell spoke about monetary policy and the US economy.
- *Fed Press Conference*: He discussed the Fed's decisions on interest rates and monetary policy.
- *Speech at Princeton University*: Powell praised the integrity and spirit of public service, despite personal attacks from Trump.