United States Federal Reserve Chair Jerome Powell remarked on Friday that should the tariffs get larger, this would affect the way the Fed reacts.
Speaking at Chicago Booth's monetary policy forum, he did add, however, that it is not just about the tariffs. What could also affect the Fed's future moves is "what is happening with long-term inflation expectations and how are the inflationary effects," Powell detailed.
Context is important, the Fed chair underlined, insisting that there are "many effects of tariffs." "It's really the effect of all these policies that matter for our policy. It's not simply what's happening with tariffs. It's what's happening with growth and all of the other things as a result of these broad changes in economic policies," Powell explained.
