Jerome Powell Says Most Goods Price Overrun Is From Tariffs | US Fed Keeps Rates Unchanged | N18G

Описание: Federal Reserve Chair Jerome Powell has stated that the majority of the recent overshoot in goods prices is attributable to tariffs rather than underlying consumer demand. Powell noted that 'most of the overrun in goods prices is from tariffs, and that's actually good news, because if it weren't from tariffs, it might mean it's from demand, and you know, that's a harder problem to solve.' He explained that the central bank views these tariff-related increases as one-time price events that are expected to peak and then decline, provided no further major tariff hikes are implemented. Addressing the Federal Open Market Committee's latest decision, Powell confirmed there was broad support for maintaining current interest rates, though he acknowledged some members dissented in favour of a cut. He emphasised that the Fed is not setting a specific test for future cuts but will remain data-dependent, making decisions on a meeting-by-meeting basis. Powell observed that while tension between the dual mandates of maximum employment and price stability remains, the upside risks to inflation and downside risks to employment have both diminished. On the subject of disinflation, Powell highlighted healthy developments in the services sector, where price pressures continue to ease across various categories. He indicated that if the labor market shows signs of further weakening or if inflation data continues to stabilise, the committee would consider loosening monetary policy. When questioned about the potential appointment of a new Fed chairman by President Donald Trump before May, Powell declined to speculate, stating that the transition process would depend on congressional actions. He concluded by noting that while risks to the economy are becoming more balanced, it remains difficult to say if they are fully in balance, reiterating that the Fed's current policy stance is well-positioned to respond to evolving economic data throughout the year.

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