Understanding the Economic Impact of New Tariffs

Federal Reserve Chair Jerome Powell highlighted on Friday that the full economic repercussions of the US tariffs implemented on April 2 will not be immediate. He pointed out that the scale of these measures surpasses initial expectations, with their effects on prices, supply chains, and consumer behavior unfolding over time.

Broader Policy Changes on the Horizon

Beyond tariffs, Powell also touched upon other significant policy shifts, including upcoming fiscal legislation and regulatory changes, which are poised to influence the economy. While he avoided specifying a timeline, he noted that these developments are progressing as anticipated for major policy adjustments.

Anticipating the Real Economic Effects

"As the year goes on," Powell remarked, "we'll begin to see the real economic effects." He underscored that the learning process is ongoing, with policymakers vigilantly monitoring how these changes permeate through the broader economy.