Dear friends, on April 16th, Federal Reserve Chairman Powell spoke at the Chicago Economic Club.

He said that the extent of the tariffs imposed by the U.S. is much higher than expected.

The impact on the economy may also far exceed expectations, not only driving up inflation

but also suppressing economic growth. From survey data and market indicators,

short-term inflation expectations have clearly risen, and people generally feel this is due to the tariff policy.

Powell also mentioned that under the influence of some policies at the beginning of the year, the U.S. economy may not rise again.

The issue of supply chain disruptions is also difficult to resolve, and it may very well prolong the inflation cycle.

For example, the automotive industry may face "severe disruptions" in the supply chain,

and it may take several years to repair it.

Additionally, Powell stated that these policy adjustments

have fundamentally changed some of the long-standing principles that the U.S. has adhered to.

The Federal Reserve also has little experience in this area. Therefore, before adjusting interest rates,

they will continue to observe the impact of tariffs and other economic policies.

Currently, many experts expect that the Federal Reserve will maintain interest rates unchanged until the end of the year.