Powell shows that tariffs can create a two-year policy problem for Fed

Federal Reserve Chair Jerome powder On Wednesday, the concern stated that the Central Bank could find a dilemma in a dilemma between the inflation control and economic growth.

Incorrectly appreciated what impact of the president Donald TrumpWhile the central banking leader is waiting for higher inflation and lower growth, it is not known where the fed should dedicate larger focus.

“We can find ourselves in the tension of our binary makeup targets,” Powell said in the statements made before the economic club of Chicago. “If it had to happen, the economy was how far away from the goal and potentially different time horizons, which were expected to be closed.”

They look at the threats by economists, including fed, fixed prices and full employment and economists, as well as scientists. Tariffs are essentially as tax exports, although the direct link has historically been historically with inflation.

After his speech, at the question and answer session, Powell, tariffs “We are likely to go away from our goal … probably for the balance of this year.”

Powell did not show any signs where interest rates are caused by the title, but I said, “For my time, we were well placed to wait for more clarity before reviewing the amendments to our policy position.”

Shares hit the session capabilities As Powell speaks, the treasury product turned down.

In a higher inflation, the Fed will increase interest rates or even increase the demand. In the case of slow growth, the Fed can be convinced to reduce interest rates. Powell stressed the importance of protecting inflation expectations in the inspection.

The markets are waiting for the Fed to be re-evaluated in June and to cut a four-quarter of a quarter of a four-quarter of a quarter by the end of 2025 according to the CME Group Fedwatch Gauge.

Fed officials usually mean that the tariffs are for the prices once and for all, but the extensive nature of Trump tasks can change this trend.

Powell noted Survey and market-based measures The long-term worldview of close-term inflation continues, although the long-term worldview remains close to 2% of the Fed. According to him, the main inflation measure of the Fed is expected to show the rate of March 2.6%.

“Tariffs are highly probable that inflation is temporarily improving,” Powell said. “Inflation effects can be even more resistant. This is how long it takes to avoid effects, how long to pass the measure of effects, and the prices of their prices and to prevent long-term inflation expectations.”

The output was mostly similar to someone Delivered at the beginning of this month Verbatim in Virginia and in some passages.

Powell noted threats to growth, as in inflation.

The first quarter, the first quarter to be reported in the end of this month, is expected to grow less in the US economy for January-factory periods.

Indeed, the information that has so far shows that the increase in the first quarter is slow down in the first quarter.

The previous day, the trade department reported retail Increased a better than expected in March. The report showed that a large part of the growth has demonstrated a solid profit from car buyers and tariffs and other sectors.

After the report, Atlanta Fed, gold imports and exports are adjusted for an unusual rise, A -0.1% of GDP has increased by GDP growing GDP in PACE. Powell described the economy as a “solid case” with the expected slowdown.

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