Powell Navigates Inflation Risks Amid Trump's Trade Policies

Federal Reserve Chair Jerome Powell is set to address economic impacts of U.S. tariff policies. His speech will focus on the effects of new Trump administration policies, including tariffs and government downsizing, on inflation and employment. Economic forecasts and inflation expectations will be key topics.

Federal Reserve Chair Jerome Powell is preparing for a crucial speech in New York on Friday, as new risks threaten to complicate the Fed's economic strategies. As the Trump administration's tariff policy takes shape, Powell will face pressures stemming from global trade tensions that could reignite inflation.

Powell's address at an economic conference comes as the Fed approaches a policy meeting on March 18-19, where fresh forecasts will unveil the administration's impact on U.S. central bankers' outlooks. With tariffs and policy changes potentially reshaping market dynamics, inflation concerns have returned to the forefront.

Investor apprehension about tariffs' inflationary effects grows, placing Powell in a challenging position. As Powell delivers his remarks, key data, including February's employment report, and broader economic trends will provide critical insights. Stakeholders await clarity on potential actions concerning price stability and growth management.

(With inputs from agencies.)