Powell Says Tariffs Likely To Lead To Higher Inflation, Slower Growth

RTTNews | 69 dagar sedan
Powell Says Tariffs Likely To Lead To Higher Inflation, Slower Growth

(RTTNews) - Citing a highly uncertain outlook due in part to President Donald Trump's new tariffs, Federal Reserve Chair Jerome Powell on Friday indicated the central bank will wait for greater clarity before considering any adjustments to interest rates.

Powell noted in remarks at the Society for Advancing Business Editing and Writing's annual conference that it will very difficult to assess the likely economic effects of the higher tariffs until there is greater certainty about the details.

However, Powell said it is becoming clear that the tariff increases will be significantly larger than expected and the same is likely to be true of the economic effects, which will include higher inflation and slower growth.

"The size and duration of these effects remain uncertain," Powell said. "While tariffs are highly likely to generate at least a temporary rise in inflation, it is also possible that the effects could be more persistent."

He added, "Avoiding that outcome would depend on keeping longer-term inflation expectations well anchored, on the size of the effects, and on how long it takes for them to pass through fully to prices."

The Fed chief noted the central bank is obligated to keep longer-term inflation expectations well anchored and to make certain that a one-time increase in the price level does not become an ongoing inflation problem.

Despite the uncertainty, Powell argued the Fed's current monetary policy stance is well positioned to deal with the risks and said the economy is "still in a good place."

Powell said the Fed will continue to carefully monitor incoming data, the evolving outlook, and the balance of risks and called it "too soon to say what will be the appropriate path for monetary policy."

The Fed's next monetary policy meeting is scheduled for May 6-7, with CME Group's FedWatch Tool currently indicating a 60.6 percent chance the central bank will leave rates unchanged and a 39.4 percent chance of a quarter point rate cut.

Last month, the Fed announced its widely expected decision to leave rates unchanged for the second straight meeting, but projections signaled the central bank is still likely to lower rates later this year.

read more
U.S. Producer Prices Inch Up 0.1% In May, Less Than Expected

U.S. Producer Prices Inch Up 0.1% In May, Less Than Expected

After reporting an unexpected decrease by U.S. producer prices in the previous month, the Labor Department released a report Thursday showing producer prices crept slightly higher in the month of May. The Labor Department said its producer price index for final demand inched up by 0.1 percent after slipping by a revised 0.2 percent in April.
RTTNews | 10h 4minuter sedan
U.S. Weekly Jobless Claims Unexpectedly Unchanged At Eight-Month High

U.S. Weekly Jobless Claims Unexpectedly Unchanged At Eight-Month High

The Labor Department released a report on Thursday showing first-time claims for U.S. unemployment benefits came in flat in the week ended June 7th. The report said initial jobless claims in at 248,000, unchanged from the previous week's revised level. Economists had expected jobless claims to dip to 240,000 from the 247,000 originally reported for the previous week.
RTTNews | 10h 7minuter sedan
U.S. Producer Prices Inch Up Less Than Expected In May

U.S. Producer Prices Inch Up Less Than Expected In May

After reporting an unexpected decrease by U.S. producer prices in the previous month, the Labor Department released a report Thursday showing producer prices crept slightly higher in the month of May.
RTTNews | 11h 17minuter sedan
U.S. Consumer Prices Inch Up 0.1% In May, Slightly Less Than Expected

U.S. Consumer Prices Inch Up 0.1% In May, Slightly Less Than Expected

A closely watched report released by the Labor Department on Wednesday showed a slight increase by consumer prices in the U.S. in the month of May. The Labor Department said its consumer price index inched up by 0.1 percent in May after rising by 0.2 percent in April. Economists had expected another 0.2 percent increase.
RTTNews | 1 dag sedan
U.S. Job Growth Slightly Exceeds Estimates In May

U.S. Job Growth Slightly Exceeds Estimates In May

Employment in the U.S. increased by slightly more than expected in the month of May, according to a report released by the Labor Department on Friday. The Labor Department said non-farm payroll employment shot up by 139,000 jobs in May after jumping by a downwardly revised 147,000 jobs in April.
RTTNews | 6 dagar sedan