Part 6/9:

During a recent Federal Open Market Committee meeting, Powell cited rising uncertainties affecting the U.S. economic outlook, warning that sustained tariffs could drive inflation higher, slow economic growth, and lead to increased unemployment. While some expect the inflationary effects to be temporary, others argue it may have more persistent consequences.

Despite pressing from President Trump to ease borrowing costs, Powell’s reluctance reflects a belief in the current approach's flexibility. Economic indicators have shown mixed results, with a contraction earlier this year followed by strong consumer spending in March and job creation exceeding expectations in April.