Federal Reserve Chairman Powell stated at an event on Wednesday that the scale of tariffs introduced by the Trump administration far exceeded the Federal Reserve's expectations and even surpassed the highest estimates previously set. During a Q&A at the Economic Club of Chicago, Powell pointed out that these tariff measures have had a much greater impact on the economy than predicted by the market and the Federal Reserve, reflecting that the current trade policy might impose greater pressure on economic growth.
He further emphasized that although the Federal Reserve had assessed the economic situation in advance, the scale and impact of Trump's tariff policy still exceeded expectations, which might exacerbate economic uncertainty, affecting the future development of the U.S. economy. Powell's remarks suggest that the Federal Reserve will continue to monitor the economic impact of tariffs and consider adjustments in future policy decisions.
These remarks highlighted the potential impact of current U.S. trade policy on the economy, especially the possible pressure of tariff policy on GDP and consumer confidence. Powell also added that the Federal Reserve will continue to rely on the latest economic data to determine whether adjustments to monetary policy are necessary.
