Powell "Removing tariffs could achieve the 2% inflation target"

JH Kim

Summary

Fed Chair Powell said that if tariffs are removed, achieving the 2% inflation target would be possible.
This suggested that tariffs are exerting upward pressure on prices.
Markets are paying attention to how the Fed will incorporate tariff factors into monetary policy decisions.

Jerome Powell, chair of the U.S. Federal Reserve (Fed), mentioned the impact tariffs have on prices and said that if tariffs were removed, inflation could reach the 2% target.

On the 10th (local time), according to the breaking economic news account Walter Bloomberg, Powell said, "If you remove tariffs, you could achieve the 2% inflation target."

Powell's remarks were interpreted as suggesting that tariffs can act as an upward pressure on the price path. Markets are paying attention to how the Fed will reflect tariff factors when presenting its future monetary policy path.