FED President Jerome Powell spoke about the economic appearance at the Annual Conference of Business Editorial and Writing (SABEW) Annual Conference.
Speaking for the first time after US President Donald Trump’s announcement of mutual tariffs, Powell said the economy is still in a good place despite the high and downward risks of uncertainty.
Powell said that although the data was much closer to a solid growth, a labor market in balance, and a 2 percent target, it still points to an inflation above the bank’s target.
“When we look forward, high tariffs will have an impact on our economy and probably will increase inflation in the coming quarters,” the FED President Powell said. he said.
Powell stated that both survey and market -based measurements related to short -term inflation expectations in a way that reflects this are upward, according to most measurements, long -term inflation expectations continue to be well -barbed and compatible with 2 percent target.
Powell stressed that the determination to return inflation to a sustainable 2 percent target.
Powell said that they will continue to carefully monitor the data, the developing appearance and risk balance, and they are in a good position to expect more clarity before thinking about making any adjustments at the policy stance.
“It is too early to tell what the appropriate course will be for the monetary policy.” he said.
