Did Fed Chair Jerome Powell Just Throw President Donald Trump Under the Bus Concerning Inflation?

Market Performance - The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite experienced significant gains in 2025, rising by 13%, 16%, and 20% respectively, marking the S&P 500's third consecutive year of gains of at least 16% [1] Federal Reserve's Monetary Policy - The Federal Reserve's ongoing rate-easing cycle is considered a crucial factor in the market rally, alongside technology trends such as artificial intelligence and quantum computing [2] - The Federal Open Market Committee decided to keep the federal funds target rate unchanged in its recent meeting, following three prior meetings where it reduced the rate by 25 basis points each [3] - Lowering the federal funds rate reduces borrowing costs for consumers and businesses, which can stimulate lending, hiring, acquisition activity, and innovation, positively impacting the U.S. economy and stock market [4] Inflation Concerns - Despite the positive market performance, inflation remains elevated relative to the Federal Reserve's long-term goal of 2%, with Fed Chair Jerome Powell attributing this to President Trump's tariffs [5] - Powell noted that the current inflation rate is largely influenced by the goods sector, which has been affected by tariffs, while disinflation is observed in the services sector [6] - There is an expectation that tariff-related inflation will peak in the middle quarters of the year [7]