AsianFin -- Despite a worsening US economic outlook in recent weeks, Federal Reserve Chair Jerome Powell chose not to sound the alarm during a press conference on Wednesday following a two-day policy meeting.
Powell downplayed growing concerns about economic growth and the potential price increases resulting from President Donald Trump’s escalating trade war. He even reintroduced a previously discarded term, suggesting that the inflationary effects of tariffs are likely to be short-lived.
“As I’ve mentioned, it can sometimes be appropriate to look past inflation if it’s expected to fade quickly without intervention—if it’s transitory,” Powell explained.
While he described this as the “base case,” Powell also cautioned that policymakers “really can’t be certain” whether the impact will indeed prove temporary.
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