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Powell vs Tariffs: The Fed Will Not Save the Economy 'On Demand'

Jerome Powell, the chairman of the Fed, made an important statement against the backdrop of the tariffs imposed by Trump. According to him, the new tariffs could provoke an increase in inflation and a slowdown in economic growth. But at the same time — and this is a key point — the Fed does not intend to urgently lower rates in response to the turbulence.

Powell made it clear: the Federal Reserve will act cautiously and independently, despite pressure from the White House. His position is aimed at maintaining a balance between curbing inflation and supporting the economy.

Against the backdrop of these statements, the markets reacted with a decline: the S&P 500 index fell by more than 4%, and investors began to reassess the risks of further actions by the Fed.

Financial policy under political pressure is a test of resilience, and Powell is holding up for now.

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