U.S Secretary of the Treasury Scott Bessent & Federal Reserve Chair Jerome Powell appear to be aligned in their assessment, that inflation stemming from evolving trade relations are likely to have a manageable “transitory” effect.
The Fed was clear that their monetary policy outlook remains unchanged, pouring cold water on theories that President Trump is pushing markets down to influence a rate cut from the Fed.
Sources & Excerpts
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Powell Reassures on Economy and Beaten Stock Bulls Jump Back In
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"Recession odds, while higher, aren’t alarming. Inflation, while still sticky, isn’t worth fretting over. And trade policy? It’ll become clear when it becomes clear. In short, Federal Reserve Chair Jerome Powell said, there’s no reason to do anything with the current path of monetary policy."
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Powell Revives ‘Transitory’ With Remarks on Tariff Inflation
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"Fresh off the Federal Reserve’s new economic projections showing officials expect higher inflation and slower growth this year, Chair Jerome Powell said Wednesday it’s his “base case” that any bump in price-growth due to President Donald Trump’s tariffs policy would prove transitory."