Powell discusses the impact of tariffs again, emphasizing that the labor market relies on price stability

According to Golden Finance, Federal Reserve Chairman Jerome Powell once again emphasized that the Fed will focus on preventing tariff driven price increases from evolving into more persistent inflationary pressures. Our responsibility is to maintain a stable anchor of long-term inflation expectations and ensure that a one-time price increase does not evolve into a persistent inflation problem, "Powell said in a speech prepared for the Chicago Economic Club on Wednesday. He also pointed out that the policy makers will maintain a balance between their goals of promoting full employment and maintaining price stability. "At the same time, bear in mind that without price stability, we cannot create long-term strong labor market conditions that benefit all Americans." This statement strengthened the signal repeatedly highlighted by Powell. Federal Reserve officials are not in a hurry to adjust the benchmark policy interest rate. He also made such a sound on April 4th not long ago. Powell and other Federal Reserve decision-makers have expressed support for keeping interest rates unchanged while waiting for clearer signals on how President Donald Trump's economic policies, especially on trade, will affect the US economy. Powell acknowledges that economic weakness and rising inflation may ultimately conflict with the Federal Reserve's two objectives. We may find ourselves in a challenging situation where our dual mission goals conflict, "he said." If that happens, we will consider the distance between the economic situation and each goal, as well as the potential different time dimensions needed to bridge these gaps