Federal Reserve Chair Jerome Powell recently addressed the economic implications of the Trump administration's new 10% tariffs on all imports. He cautioned that these tariffs are expected to raise inflation and slow U.S. economic growth. Despite President Trump's calls for immediate interest rate cuts, Powell emphasized a cautious approach, indicating that the Federal Reserve is unlikely to lower rates in the near term. He highlighted the need to prevent short-term price increases from leading to long-term inflation expectations. Barron's+6New York Post+6WSJ+6AP News+1New York Post+1AxiosAP News+2WSJ+2Politico+2
Powell's remarks suggest that the central bank is focused on maintaining its dual mandate of price stability and maximum employment, choosing to wait for clearer economic indicators before adjusting monetary policy. New York Post
These statements have influenced financial markets, with major indices experiencing declines.
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