Fed Chair Powell: Tariff Effects Expected in June-August, Full Impact Still Uncertain

Federal Reserve Chair Jerome Powell has recently stated that he expects to see meaningful price effects from tariffs in the June, July, and August time frame. However, if these effects are not observed, it will carry lessons for the Fed.

Powell made these comments while testifying before Congress, emphasizing that the Fed cannot know the full impact of tariffs until they actually see it. He noted that the Fed will be learning as it goes and is prepared to adjust its policy stance accordingly.

The Fed has been closely monitoring the impact of tariffs on the U.S. economy, as they have the potential to raise prices for consumers and businesses, which could in turn slow down economic growth. Powell has previously stated that the Fed is prepared to take action if necessary to support the economy and maintain price stability.

The comments from Powell come as the U.S. and China continue to engage in a trade war, with both countries imposing tariffs on each other's goods. The situation has raised concerns about the potential impact on the global economy and has led to calls for a resolution to the trade dispute.

In his testimony, Powell also reiterated that the Fed is committed to maintaining a strong labor market and stable prices, and will continue to monitor economic developments closely. He noted that the Fed's policy decisions are data-driven and will be guided by incoming information on economic conditions.

Overall, Powell's comments suggest that the Fed is prepared to take action if necessary to support the economy and maintain price stability, but also acknowledges that the full impact of tariffs is still uncertain and will be closely monitored.