- Inflation has come down quite a bit and we’re close to maximum employment
- Data has been solid, right through today’s jobs report
- What we’ve learned is that tariffs are higher than almost anyone expected but we don’t know where that comes to rest
- People expect us to tell the truth, and that’s what we intend to do
- We’re not responsible for trade, immigration or fiscal policy
- A year from now should be much lower as impact of Trump policies becomes clearer
- The two goals of the dual mandate may be in tension, but we’re not in a situation like the 1970s
- It feels like we don’t need to be in a hurry
- I fully intend to serve all of my term
- We are hearing from a lot of people waiting for clarity, I don’t know when that will come
- Uncertainty will decline
Powell seems to be under the illusion that there is going to be clarity on Trump policies. I don’t think that’s the case as Trump will retain the ability to threaten and implement tariffs throughout his term. We would all like to hear a clear set of policies so we can make investments but I don’t think it’s coming.
Overall, Powell isn’t giving much away here as he faces some very tough choices.
Fed Chairman: “it doesn’t seem like we need to be in a hurry”
Reporter: “really?”
Powell: “yes”
US 2-year yields have climbed during this speech and are at 3.61%.