Summary
Fed Chair Jerome Powell warned that Trump’s new tariffs will likely raise inflation and slow growth, creating a “highly uncertain outlook.”
Speaking in Arlington, Va., Powell said the Fed will hold off on interest rate moves until the effects are clearer.
While Trump pushes for rate cuts, Powell stressed the need to keep inflation expectations anchored.
Powell acknowledged current economic strength but cited growing consumer anxiety and elevated 2.8% core inflation.
Based on his comment yesterday, he would find out which one is moving faster in the wrong direction and be more aggressive on that side of the mandate. If they are both rising, but one is rising faster than the other, then he would focus on that side first.