Chair Powell: "Tariffs are not a major factor in inflation"

JH Kim

Summary

Jerome Powell, chair of the Fed, said that tariffs are not a major factor in inflation.
Powell said that tariff pass-through is smaller than expected.
He explained that middle-group companies are absorbing the tariff burden, so it has not yet been passed on heavily to consumers.

On the 23rd (local time), according to the economic breaking news channel Walter Bloomberg, Jerome Powell, chair of the U.S. Federal Reserve (Fed), said in an "Economic Outlook" speech held in Warwick, Rhode Island, "tariffs are not a major factor in inflation."

Powell added, "The pass-through of tariffs is less than we expected," explaining, "intermediate firms are absorbing the tariff burden, and it does not seem to have been passed on heavily to consumers yet."