#PowellRemarks
Here are the highlights from Fed Chair Jerome Powell’s speech at the Economic Club of Chicago on Wednesday:
• In his opening comments, Powell reiterated the Fed’s priority: keeping inflation under control, especially in light of potential price pressures from new tariffs.
“Our obligation is to keep longer-term inflation expectations well-anchored and to make certain that a one-time increase in the price level does not become an ongoing inflation problem,” he stated.
• He emphasized the Fed’s dual mandate: promoting maximum employment while ensuring price stability.
• During the Q&A, Powell affirmed the central bank’s independence:
“Our independence is a matter of law.”
• Despite Powell’s calming tone, markets didn’t take it well. As he spoke, the S&P 500 fell 2.2% and the Nasdaq dropped 3.2%, while bond prices surged — signaling investor concern.
