#PowellRemarks

Jerome Powell, the Federal Reserve Chair, has made several recent remarks on the US economy and monetary policy. Here are some key points:

- *Inflation Concerns*: Powell emphasized that inflation remains a dominant concern for the Fed, but noted signs of easing in some areas, particularly in sectors affected by supply chain disruptions.

- *Interest Rates*: He suggested that the Fed might pause or slow the pace of rate increases if inflation continues to cool and the labor market remains strong, but left the door open to further tightening if needed.

- *Labor Market*: Powell highlighted a resilient job market, though he stopped short of declaring it fully balanced, implying that the Fed is carefully weighing its next steps.

- *Monetary Policy Stance*: Powell's tone appeared measured, potentially indicating a shift toward a more dovish posture, which could support equities and risk assets.

- *Trump's Tariffs*: He warned that Trump's tariffs could fuel inflation and slow growth, adding uncertainty to markets.

- *Fed's Independence*: Powell defended central bank independence, emphasizing its importance in managing inflation.

Some notable comments from Powell include ¹ ²:

- "I don't think that my assessment really has changed. I mean, a couple of things have happened. We've gotten more strong data, but we've also seen rates move up at the long end, which could represent a tightening in financial conditions."

- "The Fed won't be rushed, outlook depends on White House," indicating that policy decisions will be data-driven.

Powell's remarks have significant implications for the US economy and financial markets. Investors and analysts closely watch his statements for guidance on future monetary policy decisions ³.