#PowellRemarks

On April 4, 2025, Federal Reserve Chair Jerome Powell addressed the economic implications of President Trump’s newly announced tariffs. He indicated that these tariffs are “significantly larger than expected” and are “highly likely” to cause a temporary rise in inflation, with the possibility of more persistent effects. Powell emphasized the Fed’s commitment to preventing a one-time price increase from evolving into ongoing inflation. He also noted that the tariffs could lead to slower economic growth, highlighting an uncertain outlook with elevated risks of both higher unemployment and higher inflation.