Fed Chief Powell Navigates Economic Crosswinds: Inflation and Job Market on Edge

Federal Reserve Chair Jerome Powell recently addressed the Greater Providence Chamber of Commerce, stressing the 'challenging situation' posed by rising inflation risks and stagnant job growth. Powell underscored the delicate balance required in adjusting interest rates, noting the potential consequences of acting too swiftly or too slowly.

Powell acknowledged the dual risks of inflation and employment, as recent job growth figures hovered below the breakeven rate. Meanwhile, tariffs have driven goods costs up, potentially impacting long-term inflation trends. Despite political pressures for rate cuts, Powell remained firm on maintaining a steady economic course.

During the address, Powell reflected on the Fed's crisis management efforts, asserting their role in mitigating deeper economic woes. As Powell's tenure approaches its end, he remains committed to navigating economic challenges with care, emphasizing the resilience of the U.S. economy amidst global uncertainties.

(With inputs from agencies.)