#PowellRemarks ‼️The Fed Provides Insight on Interest Rate Direction Amid Trump's Tariff Policy ‼️

📢 "For now, we are in a good position to wait for greater clarity before considering any adjustments to our policy stance," 📢 said Powell in a speech at the Economic Club of Chicago quoted by Reuters, Thursday (April 17, 2025).

➡️ The Fed's benchmark interest rate is currently set in the range of 4.25% to 4.5%, which has been in effect since December after a series of rate cuts late last year. Since then, progress in restoring inflation to the Fed's 2% target has slowed.

➡️ Despite the uncertainty and back-and-forth nature of Trump's tariff announcements, assessments of the potential impacts will be at the center of the Fed's upcoming debate about whether to leave the benchmark interest rate unchanged, lower it, or even consider raising rates.

⏩ Powell indicated that tariffs are very likely to result in at least a temporary increase in inflation. He also added that the inflation impact could also be more persistent.

🔥"Avoiding these effects will depend on the magnitude of the impact, on how long the effects will fully influence prices, and ultimately, on efforts to keep long-term inflation expectations anchored," 🔥 he said.