# **Fed Chair Powell Says Tariff Impact on Inflation Likely "Temporary" – What It Means for Markets**
Federal Reserve Chair Jerome Powell recently addressed the potential impact of tariffs on inflation, suggesting that any upward pressure on prices may be short-lived. With markets closely watching the Fed’s next moves, Powell emphasized that upcoming economic data will play a crucial role in shaping future policy decisions.
Here’s what you need to know:
### **🔹 Key Takeaways from Powell’s Remarks**
- **Tariffs may cause a "temporary" inflation spike** – but long-term effects remain uncertain.
- **Fed policy is "moderately restrictive"** – meaning rates are high enough to curb inflation but could adjust based on new data.
- **Future decisions depend on incoming economic reports** – jobs, CPI, and GDP numbers will guide the Fed’s next steps.
### **🔹 What This Means for Traders & Investors**
- **Crypto & Stocks:** If inflation stays sticky, the Fed could delay rate cuts, keeping pressure on risk assets like Bitcoin and tech stocks.
- **Forex & Bonds:** A stronger dollar may persist if rates stay high, while Treasury yields could remain elevated.
- **Long-Term Outlook:** If tariffs don’t fuel lasting inflation, the Fed may pivot sooner, boosting market optimism.
### **🔹 Market Reactions & What to Watch**
- **Next CPI Report** – Will inflation cool or remain stubborn?
- **Fed Meeting in September** – Any hints at rate cuts or extended tightening?
- **Geopolitical Risks** – Could new tariffs or trade wars disrupt supply chains again?
### **🔹 Expert Opinions & Influencer Takes**
- **@RaoulGMI (Real Vision):** *"Powell’s playing it safe—markets want cuts, but the Fed won’t budge until inflation is truly tamed."*
### **🔹Thoughts**
Powell’s comments reinforce the Fed’s cautious approach—ready to act but not in a hurry.
- How are you positioning your portfolio?
👇 #Fed #Inflation #Bitcoin #Stocks #Macro @Bubblemaps.io $BTC
