Jerome Powell:
๐ Powell confirmed that the American economy is still strong, but he pointed to an increase in uncertainty, especially with the decline in confidence among households and businesses.
๐ The main reason, according to him: the escalating trade tensions between the United States and China and the tariff war ๐บ๐ธ๐จ๐ณ
๐ Powell talked about the impact of tariffs, stating that they could lead to higher inflation for a longer period than expected, and the outcome depends on market expectations for inflation. ๐ธ
๐ He also pointed out an important point: "We cannot maintain a strong labor market without price stability" and this means that raising tariffs could lead to a slowdown in growth and rising prices at the same time! ๐