Federal Reserve Chair Jerome Powell announced that the central bank will maintain the current benchmark interest rate while assessing the long-term effects of tariff-induced inflation. He emphasized the need for caution due to the potential for significant and prolonged economic impacts from the highest import duties in decades. Powell mentioned that forecasts suggest a 0.5 percentage point cut in rates by the end of 2025, despite ongoing inflation pressures. He acknowledged the uncertainty surrounding tariff impacts on inflation and the potential for consumer price increases, urging a careful approach in policy decisions.

Source: https://www.supplychaindive.com/news/fed-hold-see-tariff-induced-inflation-persists-powell-says-economy-senate-congress/751695/