#PowellRemarks Federal Reserve Chair Jerome Powell delivered a speech on April 16, 2025, at the Economic Club of Chicago, addressing the U.S. economic outlook and monetary policy.

Key Points from Powell's Remarks:

Economic Outlook: Powell noted that while the U.S. economy remains fundamentally strong, growth has decelerated in the first quarter. Consumer spending has been modest, and businesses have increased imports to preempt potential tariffs, which may weigh on GDP growth.

Labor Market: The labor market is near maximum employment, with nonfarm payrolls averaging 150,000 jobs per month in the first quarter. Wage growth has moderated but continues to outpace inflation, indicating a balanced labor market.

Inflation Concerns: Inflation has eased from its pandemic highs but remains above the 2% target. Powell expressed concern that recent tariffs could lead to higher inflation and slower growth, potentially putting the Fed's dual mandate in tension.

Monetary Policy Stance: Given the current economic uncertainties, particularly regarding trade policies, Powell emphasized a cautious approach. He stated that the Fed is well-positioned to wait for greater clarity before making any policy adjustments.