Federal Reserve Chair Jerome Powell Cautious on Tariffs and Inflation

Federal Reserve Chair Jerome Powell expressed caution regarding the potential economic impacts of recent tariffs during a public affairs event. Powell highlighted that tariffs could lead to increased inflation, a concern that has been echoed across various financial news outlets. In his remarks, Powell indicated that the Federal Reserve would adopt a wait-and-see approach before making any further adjustments to interest rates, aiming to better understand the effects of these tariffs on the economy.

Recent reports from The New York Times, CNBC, and The Wall Street Journal have analyzed the potential ripple effects of tariffs on the stock market and overall economic stability. These analyses suggest that while tariffs might protect certain domestic industries, they could also contribute to higher prices for consumers and complicate the Federal Reserve's efforts to manage inflation.

Powell's cautious stance reflects a broader uncertainty about how to navigate the complex interplay between trade policies and monetary policy. As the situation develops, the Federal Reserve's decisions will be closely watched by investors and policymakers alike, seeking clues on how to respond to the evolving economic landscape.

• Federal Reserve
• Inflation
• Jerome Powell
• Tariffs

Detailed

The Fed Isn’t Rushing to Save the Markets This Time

23 hours ago

- nytimes

Powell sees tariffs raising inflation and says Fed will wait before further rate moves

2 days ago

- cnbc

Tariffs likely to cause higher inflation and slower growth, Powell warns

2 days ago

- washingtonpost

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Do tariffs affect interest rates?

In terms of monetary policy, tariff hikes without more tax cuts and uncertainty suppressing spending would call for more interest rate cuts compared with the baseline. But if the tariff shock is more inflationary, the Fed could be forced to put rate cuts on hold for an extended period.

Will tariffs raise interest rates?

Key Takeaways. New tariffs from the Trump administration are raising worries about a recession and could worsen short-term inflation pressures. Analysts say Fed officials may focus on slowing growth and cut interest rates more than previously expected this year to support the economy.

How will the tariffs affect inflation?

Fed chair says Trump tariffs will likely raise inflation, slow economic growth. The Trump administration's expansive new tariffs will likely lead to higher inflation and slower growth, and the Federal Reserve will focus on keeping price increases temporary, Fed Chair Jerome Powell said Friday.

Will Powell lower rates?

Federal Reserve Chair Jerome Powell said Friday that he expects President Donald Trump's tariffs to raise inflation and lower growth, and indicated that the central bank won't move on interest rates until it gets a clearer picture on the ultimate impacts.