Summary of Fed Chairman Powell's speech (with full text attached): Trump was directly hit in the face Trump: Powell cuts interest rates quickly Powell: "It's too early. Horizontal inscription: The emperor is in a hurry, eunuchs are practicing Tai Chi! The summary of Federal Reserve Chairman Powell's speech (questions) is as follows: Key point: Weak economic growth and rising inflation offset each other, which will enable the Federal Reserve to maintain its expectation of two interest rate cuts in 2025. 1. The tariff rate exceeds expectations, which may lead to an increase in inflation and a slowdown in economic growth 2. It is too early to determine the appropriate policy path The Federal Reserve is in a favorable position to 'wait for clearer information' 4. Tariffs may have a sustained impact on inflation 5. The impact of tariffs on the economy is greater than expected 6. It is necessary to ensure that price increases do not lead to sustained inflation 7. The latest employment report data still shows the stability of the economy, with increased downside risks, but the economy is still in a good state At the May FOMC meeting, he added, "I don't feel like we need to rush." This was the Fed's statement, indicating that they shouldn't expect that meeting to cut interest rates. The full text of Powell's speech (organized as follows): Tariffs are higher than expected, and the impact will be greater than expected ​ Thank you for inviting me today. Monetary policy is more effective when the public understands what we are doing and why. Through your work, journalists like you have helped promote deeper understanding. I believe that all the journalists present here must have many questions to ask. Before answering some questions, I will briefly outline the prospects of the economy and monetary policy. At the Federal Reserve, we are focused on achieving the dual mission goals assigned to us by Congress: maximizing employment and stabilizing prices. Despite high uncertainty and increased downside risks, the economy remains in a good state. The latest data shows that the economic growth is robust, the labor market remains balanced, and the inflation rate is close to but still above our 2% target. Recent economic data After several years of steady growth, many forecasters expect a slowdown in growth this year. The preliminary GDP data for the first quarter will be released later this month. The limited hard data is consistent with a slower but still robust growth outlook. At the same time, survey reports from households and businesses indicate a decrease in expectations and an increase in uncertainty about the outlook. Survey participants pointed out that new federal policies, especially those related to trade, are having an impact. We are closely monitoring the contradictions between these hard data and soft data. As the new policies and their potential economic impacts become clearer, we will have a clearer understanding of their impact on the economy and monetary policy. From multiple indicators, the labor market seems to be in a roughly balanced state and has not become a significant source of inflationary pressure. This morning's employment report shows that the unemployment rate for March was 4.2%, still at a low level since the beginning of last year. In the first quarter, non farm employment increased by an average of 150000 jobs. The low layoff rate, moderate employment growth, and slowing labor force participation rate collectively drive the unemployment rate to remain stable. On the other side of the dual mission shift, inflation has sharply decreased since the peak of the pandemic in 2022. This reduction was achieved without experiencing the pain of high unemployment rates typically associated with tight monetary policies. Recently, inflation has made progress towards the 2% target, but this progress has slowed down. In February of this year, personal consumption expenditure (PCE) prices increased by 2.5% year-on-year. After excluding the volatile categories of food and energy, the core PCE price increased by 2.8%. Looking ahead, higher tariffs will gradually affect our economy and may drive up inflation in the coming quarters. Market expectations and survey data both indicate that inflation expectations have increased in the short term. By most measures, long-term inflation expectations (i.e. expectations for the next few years) remain stable and consistent with our 2% inflation target. We remain committed to sustainably restoring the inflation rate to our target of 2%. monetary policy When it comes to monetary policy, we face a highly uncertain outlook with the risk of higher unemployment and inflation. The new government is implementing significant policy changes in four different areas: trade, immigration, fiscal policy, and regulation. Our monetary policy stance has been prepared to address these risks and uncertainties, and will be adjusted once we have a clearer understanding of policy changes and their potential impact on the economy. It is not our responsibility to comment on these policies. On the contrary, we evaluate their potential impacts, observe economic behavior, and adjust monetary policy based on this to achieve our dual mission goals in the best possible way. We have made it clear that assessing the potential impact of increasing tariffs on the economy is very difficult until there is more information about tariff details, such as tariff targets, rates and duration, as well as retaliatory measures from trading partners. At present, although uncertainty remains high, it is clearly foreseeable that the increase in tariffs will be greater than expected. The economic impact may also be more significant than expected, including higher inflation and slower growth. The scale and duration of these impacts are not yet clear. Although tariffs are highly likely to cause at least a temporary increase in inflation, they may also lead to more lasting impacts. The key to avoiding such outcomes lies in maintaining the stability of long-term inflation expectations, the scale of the impact, and the time when these impacts are transmitted to prices. Our responsibility is to ensure that long-term inflation expectations remain stable and that a one-time increase in price levels does not become a persistent inflation problem. We will continue to carefully monitor the upcoming data releases, changes in the economic outlook, and the balance of risks. Our policy stance will not be easily adjusted until we have a clearer understanding of the future prospects of the economy. It is too early to draw conclusions about the appropriate path of monetary policy. conclusion We understand the benefits of a robust economy - enabling workers to find jobs, keeping inflation low and predictable. We also understand that excessively high levels of unemployment or inflation can cause harm and pain to communities, families, and businesses. That's why the Federal Reserve will continue to do its utmost to achieve the goals of maximum employment and price stability. (End)