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Several Important Points Mentioned by Mr. Powell..

Chairman of the Federal Reserve, Jerome Powell, in his speech highlighted several important points regarding the economic conditions of the United States and monetary policy:

1. Impact of Tariffs on the Economy: Powell warned that the new tariffs imposed by President Trump could potentially increase inflation and slow economic growth more significantly than previously anticipated. He emphasized that although the effects may be temporary, there is a possibility of more persistent inflationary impacts.

2. Interest Rate Policy: Although the markets expect a rate cut, Powell indicated that the Federal Reserve is likely to maintain the current benchmark interest rate of 4.3% in the near term. The Fed's main focus is on controlling inflation and waiting for further clarity before making adjustments to monetary policy.

3. Labor Market: The March job report showed an addition of 228,000 jobs, indicating a solid labor market. However, the unemployment rate slightly increased to 4.2%.

4. Independence of the Fed: In response to political pressure, Powell reaffirmed the independence of the Federal Reserve and stated that monetary policy decisions are based on economic data and independent analysis, not political pressure.

Powell emphasized the importance of a cautious approach in adjusting monetary policy amidst economic uncertainties caused by trade policies and other factors.