#PowellRemarks Federal Reserve Chair Jerome Powell recently spoke about the economic outlook, highlighting key points ¹:

- *Economic Growth*: The US economy has slowed in the first quarter, with consumer spending growing modestly and strong imports expected to weigh on GDP growth due to businesses trying to get ahead of potential tariffs.

- *Inflation*: Inflation has eased from pandemic highs but remains above the 2% objective, with recent readings showing total PCE prices rose 2.3% over the 12 months ending in March.

- *Tariffs and Trade Policy*: Powell noted that the level of tariff increases announced is significantly larger than anticipated, likely to generate higher inflation and slower growth. He emphasized the need to keep longer-term inflation expectations well anchored.

- *Monetary Policy*: The Fed will balance maximum employment and price stability mandates, considering the implications of policy changes on the economy. Powell stated that they are well-positioned to wait for greater clarity before considering adjustments to their policy stance.

*Key Considerations:*

- *Labor Market*: The labor market appears to be in solid condition, with low unemployment and wage growth moderating while outpacing inflation.

- *Uncertainty*: The new administration's policy changes, including trade, immigration, fiscal policy, and regulation, are still evolving, and their effects on the economy remain highly uncertain.

- *Inflation Expectations*: Survey measures of longer-term inflation expectations appear to remain well anchored, while market-based breakevens continue to run close to 2%.