The speech by Federal Reserve Chairman Jerome Powell was a significant event for financial markets, particularly in light of the recent tariff announcement by Donald Trump.
Economic Situation and Trump's Tariffs
Powell began his speech at a conference organized by the Association for the Advancement of Business Regulation and Writing in Arlington, Virginia, stating that tariffs imposed by Trump were larger than expected. These changes may lead to increased inflation and slower economic growth.
Impact on Inflation and the Economy
According to Powell, "The Fed will wait for more clarity before considering policy adjustments. The outlook is highly uncertain. Therefore, it is 'too early' to determine the appropriate policy path." He also added that tariffs are likely to increase inflation in the coming quarters, and more persistent effects are possible. Powell remarked that "we must ensure that price increases do not lead to continued inflation."
Market and Cryptocurrency Reaction
Markets reacted to Powell's comments with price fluctuations across various assets, including Bitcoin. The chart illustrates Bitcoin's price action during his speech. Users and analysts continue to monitor the situation to assess future trends.
Jerome Powell's speech emphasizes the significance of understanding the impact of tariff policy on economic outlooks and inflation. Financial markets remain on alert for new information.
