Jerome Powell Signals Patience Amid Market Volatility and Tariff Uncertainties

U.S. Federal Reserve Chair Jerome Powell expressed a cautious stance on interest rate adjustments amid market volatility and the Trump administration's tariffs. He emphasized the need to wait for more economic data before making policy changes and highlighted the challenges posed by the current trade policy landscape.

In a recent address to the Economic Club of Chicago, Federal Reserve Chair Jerome Powell stated that the Fed would adopt a cautious approach in adjusting interest rates, waiting for more economic data clarity amid market volatility due to the Trump administration's tariff shifts.

Powell highlighted the challenges faced by the Fed, with tariffs potentially pushing up prices while economic growth and the labor market might weaken. This situation could derail the Fed's goals of stable inflation and maximum employment, placing pressure on their policy decisions.

He also addressed concerns about the impact of trade policies on economic sentiment and growth, emphasizing the importance of maintaining long-term inflation expectations to counter potential inflationary impacts of tariffs.

(With inputs from agencies.)