Wow, Powell is too tough! Now it's a bit difficult to lower interest rates in September, and Powell even mocked Trump, saying that the beautiful tax law is of no use... Here are the key points from Powell's speech:
Powell: It's still too early to judge the impact of tariffs on inflation.
The effect of tariffs on consumer prices is starting to show.
Expected (subsequent released) inflation data will reflect more tariff impacts.
The process of tariffs transmitting to prices may be slower than previously expected.
It can be said that the Federal Reserve will look at (tariff) inflation through "not raising interest rates."
Does not believe that the fiscal policies related to the "beautiful tax law" have any special stimulating effect.
We do not consider the cost of changes in government (debt) interest rates.
Powell: It's still too early to judge the impact of tariffs on inflation.
The effect of tariffs on consumer prices is starting to show.
Expected (subsequent released) inflation data will reflect more tariff impacts.
The process of tariffs transmitting to prices may be slower than previously expected.
It can be said that the Federal Reserve will look at (tariff) inflation through "not raising interest rates."
Does not believe that the fiscal policies related to the "beautiful tax law" have any special stimulating effect.
We do not consider the cost of changes in government (debt) interest rates.