#PowellRemarks

Federal Reserve Chair Jerome Powell — Key Remarks

1. Tariffs & Inflation:

Powell acknowledged the recent surge in tariffs, including the 145% levy on Chinese imports, has contributed to short-term inflation pressures.

He labeled these effects as transitory and expects the price increases to ease over time.

2. Monetary Policy Stance:

Powell reaffirmed that the Fed's current policy is restrictive to ensure inflation trends back toward the 2% target.

He signaled that while recent data has shown progress, the Fed remains cautious and vigilant.

3. Fiscal Policy Concerns:

Powell stated that simply cutting discretionary federal spending will not solve the U.S. debt problem.

He pointed to the need for structural reforms in Medicaid, Medicare, Social Security, and interest obligations.

4. Political Pressure:

Former President Donald Trump criticized Powell for maintaining high interest rates and suggested he could remove Powell from office.

This has sparked fresh debate about presidential power over the Federal Reserve, an independent institution.