Powell emphasizes Fed’s obligation to prevent ‘ongoing inflation problem’

Federal Reserve Chair Jerome Powell emphasized the Fed’s commitment to controlling inflation, saying policymakers will hold off on changes until they better understand the impact of tariffs on prices. He described economic growth as strong and the labor market near full employment but noted inflation remains above the 2% target. Powell cautioned that the effects of tariffs are still uncertain and that the Fed is prepared to wait before adjusting policy. His cautious stance may further irritate President Trump, who has criticized Powell publicly.