Fed Chair Powell Discusses Tariff Impact on U.S. Economy

According to BlockBeats, Federal Reserve Chair Jerome Powell stated that the United States is currently generating significant revenue from tariffs. He noted that the transmission of tariffs to consumers has been slower and less extensive than anticipated, with U.S. importers bearing most of the tariff costs rather than consumers. Powell emphasized that tariffs are not a major factor in consumer inflation, describing them as a one-time transmission effect expected to conclude by the end of next year. He stressed the responsibility of ensuring that tariffs do not lead to long-term inflation. Powell highlighted the importance of balancing two objectives, noting that while the labor market and inflation are becoming more balanced, there are still downward risks to the labor market.