Our obligation is to keep longer-term inflation expectations well anchored.
Looking ahead, higher tariffs will be working their way through our economy and are likely to raise inflation in coming quarters.
significantly larger than expected
it is also possible that the effects could be more persistent
I will say, though, it feels like we don’t need to be in a hurry.
At the Fed, we are squarely focused on achieving the dual-mandate goals Congress has given us of maximum employment and stable prices
While uncertainty remains elevated, it is now becoming clear that the tariff increases will be significantly larger than expected.
highly likely to lead to at least a temporary rise in inflation
It is not permitted under the law for the president to fire or demote him or any of the other Fed governors with leadership positions.
I do think with the arrival of the tariff inflation, further progress may be delayed.
I wouldn’t say we’re in a situation that’s remotely comparable to that is likely.
the Fed's understandably cautious stance also opens the door for the Committee to be late to the party
And I completely understand and accept that.
They’re unhappy and they’re not wrong to be unhappy that prices went up quite a bit and they’re paying a lot for those things.
It’s a pretty good economy.
Progress is probably delayed for the time being.
Inflation has started to move up now, we think, partly in response to tariffs.
Clearly some of it, a good part of it, is coming from tariffs.
