#PowellRemarks Jerome Powell, the Federal Reserve Chair, recently made remarks on the economic outlook, highlighting the challenges posed by tariffs and inflation. Here are some key points from his statements ¹ ²:

- *Tariffs and Inflation*: Powell noted that tariffs are likely to generate at least a temporary rise in inflation, and the Fed will focus on keeping longer-term inflation expectations well anchored to prevent sustained inflationary pressures.

- *Interest Rates*: The Fed will carefully assess incoming data and the evolving economic outlook before making any adjustments to interest rates. Powell emphasized that the path for getting to a more neutral policy setting is not preset.

- *Economic Uncertainty*: Powell acknowledged the high level of uncertainty in the economy, citing the potential impact of tariffs on business investment and employment. He also mentioned that the Fed is monitoring global developments and financial markets closely.

- *Fed Independence*: Powell reiterated that the Fed's independence is a matter of law and enjoys broad support across both political parties in the US. He emphasized that the Fed makes decisions based solely on its best analysis of the data, without consideration for political pressure.

- *Current Economic Situation*: The US economy has made significant progress toward the Fed's dual-mandate goals of maximum employment and stable prices. However, inflation is still running above the 2% target, and the Fed is committed to bringing it down sustainably.

Overall, Powell's remarks suggest a cautious approach to monetary policy, with a focus on monitoring economic data and managing inflation expectations.