Analyst: Fed Chairman Powell has the opportunity to make a public assessment of the impact of tariffs, and should seize it

Odaily News Federal Reserve Chairman Jerome Powell will give a public speech tonight, which will be his opportunity to publicly assess the impact on the economy of Trump's high tariffs on major U.S. trading partners. Although these policy changes happened quickly and there is not much other impact to be seen in the data beyond the daily fluctuations in the stock, bond and foreign exchange markets, taken together, they have made the risk of "stagflation" a topic of discussion among forecasters. Adam Posen, director of the Peterson Institute for International Economics in Washington, said that it is not the Fed's job to make trade policy or tax policy, and the government can do whatever it wants. But the Fed should point out more clearly that based on all the existing mainstream evidence, tariffs are more likely to lead to inflation (higher). At the time when Trump is about to implement the tariff policy, the inflation level is not low. (Jinshi)