WASHINGTON.- The president of the American Federal Reserve (Fed), Jerome Powell, estimated on Wednesday that the uncertainty about the economic situation is high due to the tariffs contemplated by Donald Trump, and although he admitted that these can delay the decrease in prices that eventual delay could be transitory.
“The news is full of novelties of tariffs that are imposed and eliminated and things like that. Part of that is noise, in the sense that it says nothing. We are trying to separate the grain from the straw,” he said at a press conference.
Powell spoke after at the end of the two -day meeting of the Federal Open Market Committee (FOMC), the second of this 2025, the interest rates were left in the current range of 4.25 to 4.5 %and the opinion was maintained that this year there could be two cuts.
“Some indicators of short -term inflation expectations have recently increased. We observe it in both market and survey indicators. And respondents, both consumers and companies, mention tariffs and a determining factor,” he added.
In his appearance he expressed his belief of “that with the arrival of tariff inflation it is possible that more advances are delayed” in the objective of bringing inflation to 2%.
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According to the predominant opinion in the Federal Reserve, the Personal Consumption Expenditure Price Index (which is the Fed preferred methodology to measure prices increase) will be 2.7% for this year, two tenths more than in December.
In 2026 that inflation will decelerate 2.2%, a tenth more than in the previous projection, and in 2027 to 2%, without changes compared to December.
Powell stressed that long -term inflation expectations remain well settled, and that although tariffs tend to reduce growth and raise prices, inflation linked to levies “could be transient”.
His agency detailed in a statement that in the face of future adjustments, inflationary pressures and the development of the financial and international situation will be taken into account, while Powell insisted that they are not in a hurry when lowering the types.
Last December, the month in which the types of a quarterfinal lowered, to the current range, the median forecasts of the governors of the Fed foresaw by 2025 two cuts until it is placed at 3.9% (the equivalent to a range of 3.75% to 4%). This Wednesday there were no changes in this regard.
With EFE information
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