The chairman of the US Federal Reserve (Fed) Jerome Powell said high tariffs can increase inflation in the next quarters.
Powell spoke about the prospects for the development of the economy at the annual conference of the Society for the Promotion of Business Editing and Writing Texts.
Speaking for the first time after US President Donald Trump announced the return tariffs, Powell noted that the economy is still in a good position, despite the high uncertainty and increased risks of reduction.
Powell explained that the incoming data indicate a confident growth, a balanced labor market and the inflation level, which is much closer to the target indicator of 2 percent, but still higher than the target level of the bank.
“In the future, high tariffs will influence our economy and probably increase inflation in the next quarters,” said the chairman of the Federal Reserve Plant Powell.
noting that the indicators of short -term inflation expectations based both in polls and on market data increased, Powell added that, according to most indicators, long -term inflation expectations remain well fixed and correspond to the target level of 2 percent.
Powell emphasized that the determination to return inflation to the target level of 2 percent steadily persists.
He noted that they will continue to carefully monitor incoming data, developing prospects and balance of risks, there is every chance to wait for more clarity before considering any adjustments in politics.
“It is too early to talk about what a suitable course of monetary policy will be,” Powell said.