Powell speech today: What The Fed is saying amid Trump's tariffs

More LiveNOW from FOX streaming video Jerome Powell addressed tariffs and future interest rate cuts in a speech Wednesday. The Federal Reserve chair says the agency is waiting to see what will happen with President Donald Trump’s tariffs before making any decisions on interest rates. Federal Reserve Chair Jerome Powell gave a speech where he addressed President Donald Trump’s tariffs and their potential effect on key interest rate cuts.

Why you should care: Jerome Powell said the Federal Reserve can remain patient and wait to see how tariffs and other economic policies of the Trump administration turn out before making any changes to interest rates, the Associated Press reported. "As that great Chicagoan Ferris Bueller once noted, ‘Life moves pretty fast,'" Powell said in a speech to the Economic Club of Chicago. "For the time being, we are well positioned to wait for greater clarity" on the impact of policy changes in areas such as immigration, taxation, regulation, and tariffs, he said.



Federal Reserve Chair Jerome Powell speaks at the Economic Club of Chicago on April 16, 2025, in Chicago, Illinois. (Photo by KAMIL KRZACZYNSKI/AFP via Getty Images) RELATED: Trump: Tariffs on imported pharmaceuticals coming ‘shortly’ During his speech to the Economic Club of Chicago on Wednesday, Powell explained that the Trump administration's tariffs are "significantly larger than anticipated." He also noted that inflation from tariffs will likely be temporary, but "could also be more persistent.

" Powell added, "The same is likely to be true of the economic effects, which will include higher inflation and slower growth." According to the AP, Powell also noted that the Federal Reserve might face threats to both orders given by Congress which are to boost employment and maintain solid prices. If inflation and the unemployment rate were to increase Powell explained that it may be a "challenging scenario," since the Federal would have to decide whether to keep interest rates high to combat inflation or cut them to boost growth and hiring.

Dig deeper: President Donald Trump announced tariffs on April 2 but placed most of them on hold. The Associated Press reported that this is leading to talks on whether the Federal Reserve could cut its key interest rate or take other actions. RELATED: Trump imposes 25% tariff on imported cars: 'This is permanent' An economist told the AP that the Federal Reserve is unlikely to get involved unless a breakdown occurs in the stock market for Treasury securities or other issues.

The Source: Information for this story was provided by the Associated Press, which cites comments from Federal Reserve Chair Jerome Powell’s speech. This story was reported from Washington, D.C.

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