Understanding the Economic Impact of New Tariffs

Federal Reserve Chair Jerome Powell highlighted on Friday that the full economic repercussions of the new US tariffs, effective from April 2, will unfold over time. The scale of these measures has surpassed initial expectations, with their influence on prices, supply chains, and consumer behavior expected to materialize gradually.

Broader Policy Shifts on the Horizon

Powell also pointed out that beyond the immediate effects of tariffs, the economy is poised to feel the impact of other significant policy changes. These include forthcoming fiscal legislation and regulatory adjustments. While he avoided specifying exact timelines, Powell noted that these developments are progressing at a pace typical for major policy shifts.

Anticipating Real Economic Effects

"As the year goes on," Powell remarked, "we'll begin to see the real economic effects." He underscored that the process of understanding these changes is ongoing, with policymakers vigilantly monitoring their ripple effects across the broader economy.