Fed’s Powell Says Strong Labor Market Depends on Price Stability: Full Q&A

Fed Chair Jerome Powell answered questions about the strength of the economy, the labor market and the impact of tariffs on inflation at an event at the Economic Club of Chicago. Federal Reserve Chair Jerome Powell again stressed the central bank must ensure tariffs don’t trigger a more persistent rise in inflation. “Our obligation is to keep longer-term inflation expectations well anchored and to make certain that a one-time increase in the price level does not become an ongoing inflation problem,” Powell said Wednesday at the Economic Club of Chicago. Powell said policymakers would balance their dual responsibilities of fostering maximum employment and stable prices, “keeping in mind that, without price stability, we cannot achieve the long periods of strong labor market conditions that benefit all Americans.” US stocks extended losses following Powell’s remarks. Yields on the 10-year US Treasury note declined modestly. The remarks reinforce a message Powell has repeatedly emphasized, including most recently on April 4: Fed officials are in no hurry to change the central bank’s benchmark policy rate. As they seek greater certainty about how President Donald Trump’s economic policies — especially on trade — will affect the US economy, Powell and other Fed policymakers have expressed support for holding rates steady. “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 question-and-answer session that followed his speech, Powell said he expects unemployment and inflation will each be headed away from the Fed’s goals “probably for the balance of this year.” -------- Watch Bloomberg Radio LIVE on YouTube Weekdays 7am-6pm ET WATCH HERE: http://bit.ly/3vTiACF Follow us on X:   / bloombergradio   Subscribe to our Podcasts: Bloomberg Daybreak: http://bit.ly/3DWYoAN Bloomberg Surveillance: http://bit.ly/3OPtReI Bloomberg Intelligence: http://bit.ly/3YrBfOi Balance of Power: http://bit.ly/3OO8eLC Bloomberg Businessweek: http://bit.ly/3IPl60i Listen on Apple CarPlay and Android Auto with the Bloomberg Business app: Apple CarPlay: https://apple.co/486mghI Android Auto: https://bit.ly/49benZy Visit our YouTube channels: Bloomberg Podcasts:    / bloombergpodcasts   Bloomberg Television:    / @markets   Bloomberg Originals:    / bloomberg   Quicktake:    / @bloombergquicktake