On April 16, 2024, Federal Reserve Chairman Powell stated during a speech at the Chicago Economic Club that the recent increase in tariffs in the United States has far exceeded market expectations. This move could have more profound effects on the economy, not only pushing up inflation levels but also potentially suppressing economic growth.

He mentioned that current short-term inflation expectations have clearly risen.

Powell also pointed out that, influenced by policy changes at the beginning of the year, the U.S. economy may face risks of slowing growth, and that supply chain bottlenecks are unlikely to be resolved quickly, which could prolong the duration of inflation.

Furthermore, he emphasized that this round of policy adjustments has altered the United States' longstanding long-term economic strategy, and the Federal Reserve lacks sufficient experience in dealing with the current situation. Therefore, in the future, whether or not to adjust interest rates will closely observe the ongoing impact of tariff policies and other macroeconomic variables.

Market analysts expect that, given the still high uncertainty, the Federal Reserve may maintain the current interest rate level unchanged for the year.