Tariffs can conflict Fed’s inflation and jobs, Jay Powell says

Unlock the editor’s digestion free

FT editor Roula Khalaf, chooses his favorite stories in this weekly newsletter.

Donald Trump’s tariffs can complicate the ability to control inflation, and the maximum increase in the work, Jey Powell stressed that the Central Bank is aimed at price stability.

Fed, this head will target the settlements in the United States, they will target inflation and fully employment goals, “without price stability”, we cannot achieve strong labor market conditions for a long time.

Powell said that the president has been “much larger than expected” so far, “he was likely to have economic effects that contain higher inflation and slow growth.”

This Fed The department added that these economic effects can make the US ratios in the “difficult scenario in tension of our binary goals”. “

“If this was to happen, we will consider how far the economy is how far away from the goal,” said Powell, “said Powell made a speech of a speech in Chicago.

The binary mandate of the Fed is to keep inflation in 2 percent when promoting the “maximum” employment level.

Several Fed officials – John Williams, head of New York, including Governor Christopher Waller inflation The rear side of the proposed tariffs is likely to increase in the coming months.

Waller will prove that other members of the Federal Open Market Committee, which believes in Powell chairs, when Powell’s fedus Trump’s tariffs Inflation increased the possibility that the US consumers would have a longer problem.

Recent studies show that consumers and enterprises have shown a strong price increase in the near future with a new tax from the economy.

The trump administration’s policy placed the Fedini “Wait and See”, then FOMC, after making a number of cuts in the second half of last year.

The Central Bank of the United States has kept the target range of these federal fund funds at 4.25-4.5 percent this year, while officials, economic information once in the United States and household policies, he said.