Fed Chair Powell stated that policy remains flexible, with restraint possible if inflation stalls and easing considered if the labor market weakens.
U.S. economy remains strong despite uncertainty, the zero lower bound is no longer the base case, and the Fed is open to a moderate inflation overshoot. Powell: Short-term inflation expectations rising due to tariffs. Trump policies' economic impact unclear. Long-term expectations remain near 2%. Trade, immigration, fiscal, and regulation policies drive economic outlook.
U.S. economy remains strong despite uncertainty, the zero lower bound is no longer the base case, and the Fed is open to a moderate inflation overshoot. Powell: Short-term inflation expectations rising due to tariffs. Trump policies' economic impact unclear. Long-term expectations remain near 2%. Trade, immigration, fiscal, and regulation policies drive economic outlook.


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