#PowellRemarks As new U.S. tariffs ripple through global markets, Fed Chair Jerome Powell has made it clear: the central bank is watching closely, but not panicking. The recently introduced trade measures are “larger than expected,” Powell admitted, with the potential to push inflation higher and slow economic growth. Behind the scenes, Fed staff are already modeling scenarios that assume full retaliation from trading partners—an early sign that policymakers are preparing for turbulence.