The Fed faces inflation challenges amidst trade tensions and economic uncertainty. Tariffs, energy costs, and labor market rigidity influence the Fed's cautious approach to rate cuts. Stagflation remains a risk.
Powell addressed tariffs, stating the Fed will 'wait and see'. He highlighted the central bank's focus on economic data, inflation risks, and maintaining price stability amid trade policy changes and Trump's criticism.
Car tariffs are impacting prices and supply chains, leading to increased costs and potential long-term market disruption. Consumers face higher prices for new and used vehicles. Rethinking sourcing strategies is crucial.
