Federal Reserve Chair Powell Discusses Tariff Impact on Inflation

According to Odaily, Federal Reserve Chair Jerome Powell addressed the issue of tariffs during a press conference, marking the first time he has done so. When questioned about the revision of inflation forecasts and the extent to which tariffs influence these predictions, Powell acknowledged the difficulty in determining how much inflation is driven by tariff policies. He stated that a significant portion of inflation is clearly attributable to tariffs, and the Federal Reserve will strive to understand this better. Additionally, Powell noted that policies introduced by U.S. President Donald Trump's new administration will affect the economy, but he intends to avoid making overly definitive judgments about their impact. Analysts suggest that Powell's approach may be an attempt to closely monitor monthly data to sidestep expectations about how these developments will unfold.