Powell "If tariff policy continues, achieving this year's goal may be difficult... Will cautiously wait for interest rate cuts"

Chairman Powell Who Is Determined To Maintain The Fed's Pace (Source: Federal Reserve)

Jerome Powell, Chairman Of The United States Federal Reserve (Fed), Warned That If The United States Tariff Policy Continues, It May Be Difficult To Achieve The Economic Goals For This Year. He Stated, “As Negotiations And Dialogue On Tariffs Progress, We Will Be Able To Secure More Data,” And, “We Are Prepared To Respond Quickly If Problems Arise, But The Current Uncertainty Due To Tariffs Is Too Large.” Chairman Powell Continued, “If The Tariff Policy Continues, It May Be Difficult To Achieve The Economic Goals Set For This Year, And A Preemptive Interest Rate Cut Is Also In A Difficult Situation.”

Chairman Powell Maintained A Cautious Attitude Toward Interest Rate Cuts. He Said, “The Core Of Inflation Is The Scale And Timing Of Tariffs, And Data,” And, “Overall Core Inflation Is In A Good Situation. It Is Judged That Instead Of Hastily Changing The Policy, It Is Right To Wait Until The Direction Of Government Policy Becomes Clear.” Also, “As It Is Impossible To Know What Situation Will Develop, The Fed Has No Need To Hurry And It Is A Time To Be Patient And Watchful,” He Emphasized.

Chairman Powell Strongly Warned About The Impact Of Tariff Policy On Inflation And The Employment Market. He Explained, “In The Conducted Survey, Respondents Pointed To Tariffs As The Main Factor For The Rise In Inflation Expectations. The Impact Of Tariffs Was Much Greater Than Expected So Far.” He Also Pointed Out, “If Large-Scale Tariff Increases Continue, Inflation Will Rise And Employment Will Decrease.”

Chairman Powell Added, “The Uncertainty Of The Economic Outlook Is Expanding Even More. FOMC Members Also Judge That The Risks Of Unemployment And Inflation Have Increased. Tariffs And Trade Policies Have Had A Significant Impact On GDP And Major Economic Data, And It Is Not Yet Known What Economic Uncertainty These Policies Will Cause In The Future.”

The Cautious Stance Of The Fed Seems To Reflect A Commitment To Closely Monitor And Respond To Economic Situations Rather Than Deciding On Interest Rate Cuts For The Time Being. Experts Say That Whether The Tariff Policy Changes Will Act As A Key Variable In Future Monetary Policies And Are Paying Attention To The Results Of Future Trade Negotiations To Be Announced.