Fed Chair Jerome Powell gave insight into his economic outlook on Friday, warning that tariffs could lead to a rise in inflation. However, he thinks the central bank's interest rate policy is in a position to react to whatever curveballs may come. Find out why in the video above.
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Given the, all of the change happening, and the fact that we are in a period where things have not settled in yet. And the, the Federal Reserve and you as chair are very projection data driven, policy driven. How do you handle a moment like now? I mean, can you tweak your plans and projections? Do you just kind of, do you have to reset them?
So it, you know, we, what we've had since, um, in the last few months is, uh, from the staff has been a placeholder, rather they wouldn't call it a forecast because it's so uncertain. They call it a placeholder. And that's kind of how we've been thinking about it. So it's, it's a good time to take a step back and let things clarify. That's why, uh, it's just too soon to say what the appropriate monetary policy response will be to these new policies. It is just too soon to say. We can't say with any confidence today. So that's what we're doing. We've, we've taken a step back and we're, we're watching to see what the policies turn out to be and, and the ways in which they will affect the economy. And then, then we'll be able to act. Fortunately, our policy stance isn't a good place for us to do that. You know, we're, we're probably modestly, moderately restrictive, let's say. So we're not, it's not really tight policy. But it's, it's, which is appropriate since inflation is a bit above target. So we think we're well positioned to address whatever may come. And in the meantime, I'd say we're, you know, we're waiting this to, waiting for greater clarity before we consider adjustments.