On April 17, Federal Reserve Chairman Jerome Powell said on Thursday that tariffs could create “a challenging situation, and the Fed’s dual mission goal is in a tight state.” He added, “We can’t achieve it without price stability… strong labor market conditions”, suggesting that inflation is the bigger focus, rather than the labor market. Powell reiterated that higher-than-expected tariffs will push inflation up and slow economic growth. Crucially, the extent to which price pressures will persist will depend in part on the Fed’s response. This is Powell’s second speech in two weeks, indicating that he believes that the Trump administration’s new tariff measures have a reason for the central bank to respond relatively hawkishly and not choose to cut interest rates for the time being. Powell’s stance contrasts sharply with Fed Governor Waller’s more dovish guidance, suggesting that a debate is brewing within the Fed about how to understand and respond to Trump’s aggressive tariff policy.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
