#PowellRemarks US stock markets began to crash as Powell spoke
Washington CNN —
President Donald Trump's significant policy changes, including tariffs, are unprecedented in modern history, Federal Reserve Chairman Jerome Powell said on Wednesday.
"These are very fundamental policy changes," Powell said at an event held by the Chicago Economic Club. "There is no modern experience to think about this."
Powell noted that "the level of announced tariff increases to date is significantly larger than expected" and that the ongoing uncertainty surrounding tariffs could pose a persistent economic damage. With Trump's tariffs setting the economy on a path of weak growth, high unemployment, and rapid inflation—all at the same time—the Fed is facing a situation it has not encountered in the last half-century.
"We may find ourselves in a difficult scenario where the goals of our dual mandate are in conflict with each other," Powell said.
US stock markets began to crash as Powell spoke: the Dow fell by 700 points, or 1.7%. The broader S&P 500 decreased by 2.5%. The technology-heavy Nasdaq Composite dropped by 3.5%.
The Fed is responsible for promoting full employment and keeping inflation in check, but Trump's tariffs threaten both of these goals. Currently, however, according to the latest data, the US economy is in a normal state.
Powell said the best course of action for the Fed right now is to wait until the data clearly shows how the US economy is reacting to Trump's policies.
What are your thoughts on the future prospects of the crypto market after Powell's speech?