Jerome Powell Signals Cautious Monetary Policy Amid Inflation and Labor Market Risks
Federal Reserve Chair Jerome Powell highlighted the ongoing uncertainty surrounding high inflation and signaled a cautious approach to monetary policy in 2025, indicating that significant rate cuts are unlikely in the near term. This stance reflects the Fed's balancing act between controlling inflation and managing potential labor market weaknesses. Powell also noted that tariff impacts are expected to lead to temporary price increases, adding complexity to the inflation outlook.