On April 16, 2023, Federal Reserve Chairman Jerome Powell delivered a speech at the Chicago Economic Club, emphasizing that the tariff policies recently implemented by the Trump administration could have an impact on the U.S. economy that exceeds expectations. He pointed out that these tariffs could lead to rising inflation and slowing economic growth, placing the Federal Reserve in a dilemma between controlling inflation and supporting employment. Powell stated that although the market has experienced volatility, overall operations remain orderly, and there is currently no need for Federal Reserve intervention. He emphasized that before any policy adjustments, the Federal Reserve will remain vigilant and wait for more economic data to assess the actual impact of the tariffs. Additionally, Powell reiterated that the Federal Reserve's responsibility is to ensure long-term inflation expectations remain stable and to prevent one-time price increases from evolving into persistent inflation issues. The market reacted negatively to Powell's speech, with major stock indices declining, reflecting investors' concerns about the future economic outlook.