RUSH TRANSCRIPT reporter Nick ░░░░░░░░ the Wall Street Journal ░░░░░░░░ Powell my question is ░░░░░░░░ what have you learned ░░░░░░░░ the last few months ░░░░░░░░ the inflation generating and ░░░░░░░░ pass through process and ░░░░░░░░ to drill down the ░░░░░░░░ CPI report showed evidence ░░░░░░░░ tariff induced goods inflation ░░░░░░░░ the tariff landscape is ░░░░░░░░ starting to be settled ░░░░░░░░ some of these more ░░░░░░░░ deals Given the lags ░░░░░░░░ when tariffs are announced ░░░░░░░░ when they show up ░░░░░░░░ goods prices is two ░░░░░░░░ a long enough horizon ░░░░░░░░ evaluate the impact and ░░░░░░░░ confident that tariffs aren ░░░░░░░░ impacting the broader inflation ░░░░░░░░ I think you have ░░░░░░░░ think of this as ░░░░░░░░ quite early days and ░░░░░░░░ I think what we ░░░░░░░░ seeing now is substantial ░░░░░░░░ of tariff revenue being ░░░░░░░░ on the order of ░░░░░░░░ billion a month which ░░░░░░░░ substantially higher than before ░░░░░░░░ the evidence seems to ░░░░░░░░ mostly not paid but ░░░░░░░░ only to a small ░░░░░░░░ through exporters lowering their ░░░░░░░░ companies or retailers sort ░░░░░░░░ people upstream institutions upstream ░░░░░░░░ the consumer are paying ░░░░░░░░ of this for now ░░░░░░░░ are it s starting ░░░░░░░░ show up in consumer ░░░░░░░░ as you know in ░░░░░░░░ June report We expect ░░░░░░░░ see more of that ░░░░░░░░ we know from surveys ░░░░░░░░ companies feel that they ░░░░░░░░ every intention of putting ░░░░░░░░ through to the consumer ░░░░░░░░ you know the truth ░░░░░░░░ they may not be ░░░░░░░░ to in many cases ░░░░░░░░ I think that we ░░░░░░░░ just going to have ░░░░░░░░ watch and learn empirically ░░░░░░░░ much of this and ░░░░░░░░ what period of time ░░░░░░░░ think we learned that ░░░░░░░░ process will probably be ░░░░░░░░ than expected at the ░░░░░░░░ but we never expected ░░░░░░░░ to be fast and ░░░░░░░░ think we have a ░░░░░░░░ long way to go ░░░░░░░░ re understand exactly how ░░░░░░░░ ll be so that ░░░░░░░░ how we re thinking ░░░░░░░░ it right now reporter ░░░░░░░░ I could follow up ░░░░░░░░ look through core goods ░░░░░░░░ being driven by the ░░░░░░░░ that during the pandemic ░░░░░░░░ proved more adaptive than ░░░░░░░░ at the fedexfed expected ░░░░░░░░ could argue we are ░░░░░░░░ bit looking through goods ░░░░░░░░ by not raising rates ░░░░░░░░ haven t reacted to ░░░░░░░░ inflation but I wouldn ░░░░░░░░ insist upon that but ░░░░░░░░ don t think the ░░░░░░░░ case as I said ░░░░░░░░ reasonable base case is ░░░░░░░░ these are one time ░░░░░░░░ effects Of course in ░░░░░░░░ end this will not ░░░░░░░░ out to be inflation ░░░░░░░░ we ll make sure ░░░░░░░░ it s not We ░░░░░░░░ throw our tools to ░░░░░░░░ sure this does not ░░░░░░░░ from being a one ░░░░░░░░ price increase to serious ░░░░░░░░ We want to do ░░░░░░░░ efficiently though and that ░░░░░░░░ we want to do ░░░░░░░░ if you move too ░░░░░░░░ you wind up maybe ░░░░░░░░ getting inflation all the ░░░░░░░░ fixed and you have ░░░░░░░░ come back and that ░░░░░░░░ in efficient and if ░░░░░░░░ move too late you ░░░░░░░░ do unnecessary damage to ░░░░░░░░ labor market so there ░░░░░░░░ t be in the ░░░░░░░░ a big inflationary problem ░░░░░░░░ we re trying to ░░░░░░░░ is accomplish that in ░░░░░░░░ way that is efficient ░░░░░░░░ in the end there ░░░░░░░░ be no doubt that ░░░░░░░░ will do what we ░░░░░░░░ to do to keep ░░░░░░░░ under control Ideally we ░░░░░░░░ it efficiently.