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Wow, Powell is too tough! Now it's a bit difficult to cut interest rates in September, and Powell even mocked Trump, saying the beautiful tax law is useless... Here are the key points from Powell's speech:
Powell: It's still too early to assess the impact of tariffs on inflation.
The impact of tariffs on consumer prices is beginning to show.
The expected (subsequently released) inflation data will reflect more of the tariff impact.
The process of tariffs being passed on to prices may be slower than previously expected.
It can be said that the Federal Reserve will view (tariff) inflation as subdued by not raising interest rates.
I do not believe that the fiscal policies related to the "Big Beautiful Tax Law" have any particularly stimulating effects.
We do not consider the cost of changes in government (debt) interest rates.