The Fed does not expect to have long-term inflation effects

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Fed Chair Powell: We still see firm hard economic data, tariffs can delay further improvements

“Good ship passes”, despite a terrible record, looks ready to swim again Federal reserve.

Economic predictions The Central Bank was released on Wednesday Although officials saw that the inflation is moving faster than expected this year, they see that the inflation is faster so that the trend is short. Outlook, talked again “Switching” inflation A great policy for the Fed caused headaches.

After the meeting, the news conference, in the department Jerome powder The existing outlook, the probable tariffs, said there is a short lifeline.

The FED was “Back in the transition”, the central banking leader replied: “Therefore, this is a base work. But as I said, we must see how things really work.”

However, the worldview of the Federal Open Market Committee, inflation shows 2.2% to 2.2%, which hit 2.2% in 2025, but in successful years, the authorities do not expect a steady load.

“It is sometimes suitable for viewing inflation, without transitions, without switching, it is if it looks inflation, if this is the transition,” said Powell. “This can be in tariff inflation. I think this will depend on the fare and critical of inflation expectations.”

Powell added that the inquiries of feelings show that short-term inflation indicators rise, market-based measures have been well developed for longer term expectations.

Concern over tariffs

The position is due to the fact that Donald Trump’s tariffs can lead to a global global trade war in a wider global trade war. Inflation turned out to be on the side of this year, but the outlook is now less certainly.

In 2021, when inflation rises first, 2% of the Fed said, Powell and colleagues were repeatedly They waited to pass the passageAs a result, the coviet, which gives pale and demand, was brought by special factors. However, inflation was 9% measured by the consumer price index, and the Fed had to respond to a number of aggressive interest rates taken since the beginning of the 1980s.

At the top of the Fed’s annual jackson hole in a speech of last August, Powell even joked “It was crowded in the” good ship’s passage, “he said,” I think I saw some past ships today, “he said.

The room flipped in the will of the dust and the market did not think of the transitional conversation on Wednesday. Shares jumped as Powell talksand and and Dow Jones Industry Medium Recently, 383 points were collected in the reverse of a fortune for a market for a market.

“‘Links’ returned or at least interviewed,” he said. “I say that the market reaction will not create sustainable inflationary pressure on tariffs and other policies of investors and will be in control of feeding.”

Fed voted Keep an evaluation interest rate Since the impact of tariffs and financial policy from Trump. In addition, officials of the Federal Open Market Committee showed that the percentage rate of two more quarters will be reduced this year Powell re-warned This policy is not locked nor the transition to tariffs is a view of inflation.

“We will watch them all very carefully. We do not get anything.”

 
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