Federal Reserve Chairman Jerome Powell warned Wednesday that President Donald Trump's tariffs and the "turmoil" surrounding his administration are expected to cause inflation to rise this year. An increase in unemployment figures is also expected, he told reporters Wednesday after a two-day meeting of the Federal Open Market Committee, in addition to "somewhat elevated" inflation moving the previously anticipated 2.5% estimate to 2.8% by year's end. "A good part of it is coming from tariffs," Powell explained.
www.cnn.com/2025/03/19/e ...
"Fed Chair Jerome Powell in his post-meeting news conference acknowledged the high level of uncertainty among American consumers and businesses " a lot of it stemming from the Trump administration's "turmoil," he said."[image or embed]
" Thomas Jacobs (@twj1985.bsky.social) March 19, 2025 at 4:21 PM
... Federal Reserve Chairman Jerome Powell warned Wednesday that President Donald Trump's tariffs and the "turmoil" surrounding his administration are expected to cause inflation to rise this year. An increase in unemployment figures is also expected, he told reporters ...
But a few short months ago, Wall Street was expecting multiple rate cuts in 2025 ...
Wall Street closes higher for third session on rate cut optimism (May 2024)
www.reuters.com
... However, data on Friday showed U.S. job growth slowed more than expected in April, taking pressure off the U.S. central bank to keep rates higher for longer. Coupled with earnings season in corporate America surprising to the upside, this has given investors renewed positive moment in recent sessions.
After the Fed last week signaled it was leaning towards eventual reductions in borrowing costs, but wanted to gain "greater confidence" that inflation will continue to fall before cutting rates, policymakers reiterated that message on Monday.
Richmond Fed President Thomas Barkin said the current interest rate level should cool the economy enough to return inflation to the central bank's 2% target, with the strength of the job market giving officials time to wait.
Barkin, a voter this year on interest rate policy, added that inflation "data whiplash" supported the Fed's deliberative policy towards interest rates.
Meanwhile, Federal Reserve Bank of New York President John Williams said while rate cuts would happen, monetary policy was currently in a very good place. ...
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