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Powell Prepares to Address Economic Outlook Amid Tariff Turmoil

Federal Reserve Chair Jerome Powell's speech today is expected to clarify the Fed's stance on interest rates as inflation eases but tariff uncertainties persist.

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Federal Reserve Chairman Jerome Powell speaks at the SABEW Annual Conference Society for Advancing Business Editing and Writing Annual Conference in Arlington, Va., Friday, April 4, 2025. (AP Photo/Manuel Balce Ceneta)
The Federal Reserve is responsible for promoting full employment and keeping inflation in check, but President Donald Trump’s tariffs threaten both of those goals.

Overview

  • Jerome Powell is set to speak at The Economic Club of Chicago today, offering critical insights into the Federal Reserve's monetary policy direction for 2025.
  • Recent inflation data shows easing price pressures, fueling market speculation about potential interest rate cuts later this year.
  • President Trump's unpredictable tariff policies have created significant economic uncertainty, complicating the Fed's decision-making process.
  • Global markets remain volatile, with fears of a recession heightened by aggressive U.S.-China trade measures and shifting tariff announcements.
  • Powell's remarks will address the balancing act between supporting economic growth and managing inflation risks in a challenging geopolitical environment.