Powell: Tariff effects remain uncertain with a wide range of possibilities
US Federal Reserve Chair Jerome Powell said on Wednesday the potential effects of tariffs are highly unpredictable, with a “very, very wide” range of possibilities. Speaking to a press conference, Powell highlighted the uncertainty around the duration, scope, and targeted countries, as well as the potential for retaliation and how tariffs might impact consumers.
“The range of possibilities is very, very wide,” he said. “We don’t know for how long or how much, what countries. We don’t know about retaliation. We don’t know how it’s going to transmit through the economy to consumers. That really does remain to be seen.”
He explained that while the Fed has studied historical data and economic literature to understand the factors at play, the true effects of tariffs remain unclear.
Powell further stated that the US central bank would be carefully watching the Trump administration’s new policies on tariffs, immigration and more but would not rush a response.
“We need to let those policies be articulated before we can even begin to make a plausible assessment of what their implications for the economy will be,” he noted. “This is no different than any other set of policy changes at the beginning of an administration. We’ll patiently watch and understand and not be in a hurry to get to a place of understanding what our policy response should be until we see how it plays out.”
Attribution: Amwal Al Ghad English