#PowellRemarks Federal Reserve Chair Jerome Powell warned that the newly announced tariffs by President Trump are likely to increase inflation and slow economic growth. Speaking at a conference, Powell described the tariffs as “larger than expected” and noted they could have significant economic effects. He indicated that the Fed will take a cautious approach, avoiding immediate rate adjustments until the full impact becomes clearer.

Powell emphasized that the tariffs will likely cause at least a temporary rise in inflation and could lead to more persistent effects, depending on how trading partners respond. His comments suggest the Fed is focused on ensuring short-term price pressures don't evolve into long-term inflation expectations.

Markets reacted negatively, with the S&P 500 falling 4.2% as investors grew concerned about a potential economic slowdown. Economists have raised the odds of a global recession to 60%, citing possible price increases, trade disruptions, and job losses.

In summary, Powell’s remarks signal a wait-and-see stance from the Fed amid growing uncertainty around trade policy and its broader economic fallout.$ETH