Fed Chair: ‘Our Monetary Policy Stance Is Well Positioned To Deal with the Risks and Uncertainties We Face’

Powell Turning to monetary ░░░░░░░░ we face a highly ░░░░░░░░ outlook with elevated risks ░░░░░░░░ both higher unemployment and ░░░░░░░░ inflation The new administration ░░░░░░░░ in the process of ░░░░░░░░ substantial policy changes in ░░░░░░░░ distinct areas Trade immigration ░░░░░░░░ policy and regulation Our ░░░░░░░░ policy stance is well ░░░░░░░░ to deal with the ░░░░░░░░ and uncertainties we face ░░░░░░░░ we gain a better ░░░░░░░░ of the policy changes ░░░░░░░░ their likely effects on ░░░░░░░░ economy It is not ░░░░░░░░ role to comment on ░░░░░░░░ policies Rather we make ░░░░░░░░ assessment of their likely ░░░░░░░░ observe the behavior of ░░░░░░░░ economy and set monetary ░░░░░░░░ in a way that ░░░░░░░░ achieves our dual mandate ░░░░░░░░ We have stressed that ░░░░░░░░ will be very difficult ░░░░░░░░ assess the likely economic ░░░░░░░░ of higher tariffs until ░░░░░░░░ is greater certainty about ░░░░░░░░ details such as what ░░░░░░░░ be tariffed at what ░░░░░░░░ and for what duration ░░░░░░░░ the extent of retaliation ░░░░░░░░ our trading partners While ░░░░░░░░ remains elevated it is ░░░░░░░░ becoming clear that the ░░░░░░░░ increases will be significantly ░░░░░░░░ than expected And the ░░░░░░░░ is likely to be ░░░░░░░░ of the economic effects ░░░░░░░░ will include higher inflation ░░░░░░░░ slower growth The size ░░░░░░░░ duration of these effects ░░░░░░░░ uncertain While tariffs are ░░░░░░░░ likely to generate at ░░░░░░░░ a temporary rise in ░░░░░░░░ it is also possible ░░░░░░░░ the effects could be ░░░░░░░░ persistent Avoiding that outcome ░░░░░░░░ depend on keeping longer ░░░░░░░░ inflation expectations well anchored ░░░░░░░░ the size of the ░░░░░░░░ and on how long ░░░░░░░░ takes for them to ░░░░░░░░ through fully to prices ░░░░░░░░ obligation is to keep ░░░░░░░░ run longer term inflation ░░░░░░░░ well anchored and to ░░░░░░░░ certain that a one ░░░░░░░░ increase in the price ░░░░░░░░ does not become an ░░░░░░░░ inflation problem We will ░░░░░░░░ to carefully monitor the ░░░░░░░░ data the evolving outlook ░░░░░░░░ the balance of risks ░░░░░░░░ are well positioned to ░░░░░░░░ for greater clarity before ░░░░░░░░ any adjustments to our ░░░░░░░░ stance.”