Impact of Tariffs Is Unknown for Now, Says Fed Chair Powell

Monetary Policy Stance - The Federal Reserve views its current policy stance as appropriate to guard against inflation risks and is attentive to employment risks [3] - The committee is on track to wrap up any modifications to its statement on longer run goals and monetary policy strategy by late summer [4] - The Federal Reserve aims to bring inflation sustainably to its 2% goal and keep longer term inflation expectations well anchored [5] Economic Outlook and Risks - Changes to government policies continue to evolve, and their effects on the economy remain uncertain [1] - Higher tariffs have begun to show through more clearly to prices of some goods, but their overall effects on economic activity and inflation remain to be seen [1] - There is a risk that inflationary effects could be more persistent [2] - The Federal Reserve is well-positioned to learn more about the likely course of the economy and the evolving balance of risks before adjusting its policy stance [3] Data and Assessment - In coming months, the committee will receive a good amount of data that will help inform its assessment of the balance of risks and the appropriate setting of the federal funds rate [4]