Fed's Stance on Trump's Tariffs

During his recent address to the House Financial Services Committee, Federal Reserve Chair Jerome Powell emphasized the central bank's cautious approach towards President Donald Trump's tariffs. Powell stated that the Fed is withholding its judgment on the potential economic effects of these tariffs until their impact becomes more apparent.

Economic Decisions Based on Current Conditions

"Our decisions are firmly rooted in the current state of the economy," Powell explained. He highlighted the Fed's strategy to observe the unfolding policies before making any conclusive judgments. This comes in the wake of President Trump's suggestion that interest rates should be adjusted to complement his upcoming tariff measures.

Inflation and Monetary Policy

Addressing the current economic indicators, Powell noted, "We are nearing our inflation target but have not yet reached it. The latest inflation data supports this view. As such, we intend to maintain a restrictive monetary policy stance for the time being."