Fed Chair Powell: "Will Adjust Response Approach According to Tariffs and Government Policies"

Son Min

Summary

Fed Chair Jerome Powell stated that he will adjust the Fed's response approach according to tariffs and government policies.
Depending on market movements, he indicated that if inflation continues to stagnate, policies may be maintained, and if the labor market weakens, policies may be eased.
While mentioning economic uncertainty due to Trump administration policies, he added that inflation is not significantly different from the 2% target.

*Fed Chair Powell / Photo = Wall Street Journal YouTube capture*

Jerome Powell, Chair of the Federal Reserve, stated that he will adjust the response approach according to tariffs and government policies.

On the 7th (local time), Jerome Powell, Chair of the Federal Reserve, said in a speech, "If market movements begin to occur significantly due to tariffs or policies, the Fed will adjust its response approach," adding, "If inflation continues to stagnate, we may maintain policy longer, and if the labor market unexpectedly weakens, we may ease policy."

He mentioned, "Some surveys and market inflation prediction figures had risen due to the impact of tariff policies," and acknowledged that "it's true that there is high uncertainty about the Trump administration's policies and their impact on the economy." However, he added, "Inflation is mostly remaining stable" and "is not deviating significantly from our 2% target."