Powell "Tariff-driven inflation likely to be temporary"

JH Kim

Summary

Jerome Powell, Chair of the U.S. Federal Reserve, said that inflation caused by tariffs is likely to be temporary.
Powell said he acknowledged that inflation remains at a somewhat elevated level.
He said the Fed's position has become more favorable since the rate cut in September.

On the 23rd (local time), according to economic news channel Walter Bloomberg, Jerome Powell, Chair of the U.S. Federal Reserve (Fed), said in a speech titled 'Economic Outlook' held in Warwick, Rhode Island, that "the price pressure from tariffs is likely to be temporary."

Powell said, "Inflation remains somewhat elevated," and "however, after the rate cut in September the Fed is in a more favorable position."

These remarks are interpreted to suggest that tariff policies may put pressure on prices in the short term, but are unlikely to spread into a persistent inflationary factor.