Federal Reserve Chair Jerome Powell said that the U.S. economy is "strong" despite rising uncertainty and risks of recession.
Powell added, during a speech on Wednesday, that the Federal Reserve is in a good position to wait for more clarity before considering any changes in policy stance.
Federal Reserve Chair said: "We are at or near maximum employment, and inflation is a little above the 2% target, but it has decreased significantly."
In this context, Powell mentioned that U.S. economic growth is likely to slow in the first quarter of 2025 compared to its strong pace the previous year.
Powell stated: "Strong imports in the first quarter will impact GDP growth," noting that the sharp decline in business and household confidence and rising uncertainty reflects concerns about trade policy.
The Federal Reserve Chair confirmed that the labor market in the United States is strong, generally balanced, and does not contribute to inflation.
Regarding the implications of the tariffs announced by President Donald Trump at the beginning of this month, Powell said: "So far, tariffs that came in larger than expected are likely to mean higher inflation and slower growth."
He mentioned that personal consumption expenditures prices are likely to rise by 2.3% year-on-year in March, with estimates of core personal consumption expenditures prices growth at 2.6%.
