#PowellRemarks

On April 17, 2025, the Chairman of the Federal Reserve, Jerome Powell, delivered an important speech at the Chicago Economic Club, expressing concerns about the outlook for the U.S. economy in light of new tariff policies being implemented. Powell emphasized that higher tax rates could drive inflation up while also slowing economic growth. This puts the Fed under pressure to balance controlling inflation and supporting employment.

He stated that the Fed will continue to closely monitor economic data before making any adjustments to interest rates, while affirming the goal of keeping inflation stable around 2%. Although the economy has maintained a strong labor market, risks from trade policies and the global environment could significantly impact the outlook in the coming months.

Immediately following Powell's speech, the U.S. stock market reacted negatively, indicating investor anxiety over the unclear signals from the Fed regarding monetary policy in the near future.