r/wallstreetbets • u/Force_Hammer • 1d ago

News Powell sees tariffs raising inflation and says Fed will wait before further rate moves

https://www.cnbc.com/2025/04/04/powell-sees-tariffs-raising-inflation-and-says-fed-will-wait-before-further-rate-moves.html
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u/aedes 1d ago

Our obligation is to keep longer-term inflation expectations well anchored and to make certain that a one-time increase in the price level does not become an ongoing inflation problem,” Powell said in prepared remarks. “We are well positioned to wait for greater clarity before considering any adjustments to our policy stance. It is too soon to say what will be the appropriate path for monetary policy

In other words:

  1. We will not make any rate cuts until we start to see economic data that shows the impacts of these tariffs.
  2. We are worried that these tariffs will cause runaway inflation. Our obligation is to enact monetary policy that would prevent that, if we start to see signs of that in upcoming economic data.

This is him saying that there is a chance rates may increase within the next year.

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u/defordj 23h ago

This is him saying that there is a chance rates may increase within the next year.

Aka effectively executing his responsibilities as the Chairman of the Federal Reserve

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u/Mystaes 23h ago

May? The economy still presents as “hot” and inflation is going to come in long before the end company takes a dive. So the fed will have a hot economy and high inflation.

Rates gonna go up.

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u/trikywoo 14h ago

No they won't. The fed only hike rates when inflation is caused by a hot economy. It's not just inflation = rate hikes.

The whole 'transitory' thing was because they deemed inflation was a supply logistics issue and not an over stimulated economy, so they didn't hike at first.

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u/aedes 4h ago

My man, you are in for a rude awakening here. 

Probably the best place to start reading is about how stagflation in the US in the 70s ended, and about “Volcker’s Hammer.” 

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u/Carolinaathiest 19h ago

Bonds say otherwise.We'll see I guess.

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u/Dozekar 22h ago
  1. We will not make any rate cuts until we start to see economic data that shows the impacts of these tariffs.

You increase rates to combat inflation. He's talking about rate hikes if you can even kind of read between the lines and saying they won't do them right now.

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u/ggoombah 15h ago

Tariffs cause one-time increases in respective product categories. Tariffs induced price increases do not fit the definition of inflation (traditionally).

Business as usual for the Fed

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u/aedes 15h ago

Buddy, the fed just told you literally a few hours ago, that there is a risk that tariffs will cause persistent inflation. 

And that they are holding off on doing anything until they see economic data that shows the effects of these tariffs. 

If you  think the fed believes and is going to do something that’s the complete opposite of what they just told you… 

…you are in the right subreddit. 

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u/_Begin 2h ago

Thinking you know more than the Fed. This is why we are fucked as a country.

Get off your conspiracy facebook groups.