.Powell said Tariffs are significantly larger than expected and will result in higher inflation and slower growth."

https://www.reuters.com/markets/us/fed-chair-powell-deliver-fresh-economic-view-tariffs-inject-uncertainty-2025-04-16/

"For the time being, we are well positioned to wait for greater clarity before considering any adjustments to our policy stance," Powell said in a speech to the Economic Club of Chicago.

In a later question-and-answer session he noted a potentially tough situation developing in which prices are pushed higher by tariffs while growth and possibly the labor market weaken, leaving both inflation and employment further away from the Fed's desired levels.

The Fed tries to keep inflation stable at 2% while sustaining maximum employment.

"I do think we'll be moving away from those goals, probably for the balance of this year. Or at least not making any progress," due to the impact of tariffs that so far have proved larger than even the most severe scenarios in Fed planning estimates, Powell said.

He called Trump's tariff plans "fundamental changes" that don't provide businesses and economists with any clear parallels to study.

Powell said the U.S. began the year around full employment and with inflation expected to continue falling to the Fed's target, something many doubted it could accomplish.

In his first public remarks on recent financial volatility, Powell said he felt bond and stock markets were functioning well, showing investors adapting to the new policy landscape.

Asked if there is a "Fed put" where the central bank would step in if markets plummet, Powell said "no," while offering an explanation.

"Markets are struggling with a lot of uncertainty and that means volatility. But having said that, markets are functioning...They're orderly and they're functioning just about as you would expect them to function."

U.S. stocks, already down on the session before Powell spoke, extended their losses afterward."