#PowellRemarks Jerome Powell, the Chair of the Federal Reserve, delivered remarks on April 4, 2025, focusing on the current economic outlook and the implications of recent tariffs on inflation and growth. Here are the key points from his speech:

- Economic Outlook: Powell emphasized that while uncertainty remains high, the economy is in a favorable position. He noted solid growth and a balanced labor market, with inflation running above the Fed's target of 2 percent but moving closer to it.

- Impact of Tariffs: He addressed the recent tariffs imposed by the Trump administration, stating their potential to raise inflation significantly more than expected. Powell indicated that these tariffs could lead to at least a temporary increase in prices and expressed concern about the possibility of persistent inflationary effects.

- Monetary Policy Strategy: The Fed's dual mandate focuses on achieving maximum employment and stable prices. Powell reiterated the Fed's commitment to managing inflation without compromising labor market strength. He mentioned that the central bank would remain cautious and monitor economic data closely before making any policy adjustments.

- Labor Market Conditions: Despite some pessimism among consumers and businesses regarding future economic conditions, Powell highlighted that hiring had accelerated recently, with 228,000 jobs added in March.

- Future Considerations: The Chair acknowledged that as new federal policies unfold, their effects on the economy will become clearer, which will inform future monetary policy decisions. He stressed the importance of maintaining public confidence in the Fed's ability to manage inflation effectively.

Overall, Powell's remarks reflect a careful balancing act between fostering economic growth and controlling inflation amidst rising uncertainties related to trade policies.