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.
At least since previous president Barack Obama’s policy of energy independence, the U.S. has been on a mostly inward-looking quest of maintaining technological supremacy while ending the offshoring of industrial jobs.
