FED Chairman Jerome Powell’s Speech Amid Market Confusion
FED Chairman Jerome Powell began his highly anticipated speech in the market, which was confused by Donald Trump’s tariff announcement. Powell’s speech, which was delivered at a conference organized by the Association for the Advancement of Business Regulation and Writing in Arlington, Virginia, was critical to the economic outlook and interest rate cuts, but Powell began his speech by saying Trump’s tariffs were larger than expected and risked higher inflation and slower growth.
“As the FED, we will continue to carefully monitor the incoming data, the evolving outlook and the risk balance. We are well positioned to await further clarity before considering any adjustments to our policy stance. It is too early to say what the appropriate path for monetary policy will be. There is no need to rush, we still have time. We face a highly uncertain outlook for monetary policy, with rising risks of both higher unemployment and higher inflation. Tariffs are likely to increase inflation in coming quarters; more persistent effects are possible. Potential tariffs may have a permanent inflationary effect. Tariffs are likely to cause a temporary increase in prices. The economic impact of the tariffs is likely to be greater than expected. We must ensure that price increases do not lead to continued inflation. The Fed does not have a recession probability estimate, but external estimates have raised the possibility. The American people expect the Fed to tell the truth, and the Fed will do exactly that.”
Bitcoin’s Price Action During Powell’s Speech
*This is not investment advice.
