#PowellRemarks is to say, the statements of the President of the Federal Reserve of the United States, Jerome Powell, are one of the most anticipated and analyzed events by global financial markets. Each word from Powell is dissected by investors, analysts, and economists, as his comments provide a crucial insight into the direction of the Fed's monetary policy, and therefore, the future of the U.S. and global economy.
In his most recent communications, Powell's main focus has revolved around the persistence of inflation and the impact of trade policies, especially tariffs. He has reiterated that, although economic uncertainty has decreased, it remains elevated. The Fed is in a "wait and see" position, carefully evaluating economic data before considering any significant adjustment in its stance. In this context, he has emphasized that the current monetary policy is "modestly restrictive" and will remain so until there is lasting and sustainable confidence that inflation is returning to the 2% target.
Powell has also addressed the issue of tariffs, noting that they have an inflationary impact and that their cost eventually falls on the end consumer. The difficulty in forecasting the full extent of these effects adds a layer of complexity to monetary policy decisions. Despite pressures, even from former President Trump, to reduce interest rates, Powell has maintained a firm stance, insisting on the need to see concrete data on the evolution of inflation and the labor market before acting. The Fed's projections, although with a certain degree of uncertainty, suggest gradual rate cuts in the coming years, depending on how the economic landscape develops. In summary, the #PowellRemarks continue to be an essential barometer for understanding macroeconomic prospects and the direction of markets.

