Fed Powell president: tariffs can be adding a quarter -point to inflation at this time

The president of the Federal Reserve (Fed), Jerome Powelladded more comments During his testimony before the Congress Budget Committee on Tuesdaydeveloping your argument to postpone feat cuts, probably until some moment of the fourth quarter.

Outstanding aspects

When the right time is expected, feat cuts are continued.
The data suggests that at least some of the tariffs will affect the consumer.
I think we will begin to see more inflation by tariffs from June.
We will learn as we advance during the summer.
I am completely open to the idea that the transmission of tariff inflation is less than we think.
We do not need to hurry.
If it turns out that the inflationary pressures are contained, we will reach a place where we cut rates.
I will not point a particular month.
Fed is only trying to be careful and cautious with inflation.
There is uncertainty about the size and possible persistence of tariff inflation.
The economy is slowing down this year. Immigration is a reason.
The US oil industry shock absorber is in question now.
The Fed would consider the general situation if oil prices shoot.
The dollar will be the reserve currency for a long time.
I do not believe that the reduction of MBS has a great impact on the cost of housing.
Once we get there, we can react more strongly to falls in the economy.
I think the Fed is on the right path by reducing its balance.
The Fed still has some reduction to make in its balance.
Credit conditions for small businesses are a bit adjusted.
We would expect to see significant effects of tariff inflation in June, July or August.
If we don’t see that, that would lead to earlier cuts.
At this time, we are in observation and wait.
In general, the image of inflation is actually quite positive.