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.