#PowellRemarks

Federal Reserve Chair Jerome Powell recently addressed the economic implications of the Trump administration's newly announced tariffs, highlighting concerns about potential increases in inflation and a slowdown in economic growth. Speaking at the Society for Advancing Business Editing and Writing conference in Arlington, Virginia, Powell noted that the tariffs are "significantly larger than expected," and their full economic impact remains uncertain. He emphasized that while the tariffs may cause a temporary rise in inflation, the effects could be more enduring, potentially elevating the risk of a U.S. recession.

Powell stated that the Federal Reserve is maintaining steady interest rates while observing how the economic landscape evolves, adopting a cautious "wait-and-see" approach to determine whether to respond to the greater threat of inflation or a weakening labor market. ​

These remarks come amid significant market volatility, with the S&P 500 dropping 6% and the Nasdaq falling over 11% in two days, driven by China's retaliatory tariffs and the Federal Reserve's stance on interest rates. ​