Federal Reserve Monetary Policy Report: It is too early to assess the impact of tariffs on the economy

Odaily News The Fed's latest monetary policy report to Congress on Friday said that U.S. inflation has risen and labor market conditions are solid, but suggested that the impact of Trump's tariff measures may have just begun to emerge, and reiterated the Fed's view that it can wait for clearer conditions before taking action. The Fed said in the report: "The impact of increased import tariffs on U.S. consumer prices this year is highly uncertain, as trade policy continues to evolve, and it is too early to assess how consumers and businesses will react. Although the impact of tariffs cannot be directly observed from official consumer price statistics, the pattern of net price changes for various commodities this year suggests that tariffs may be one of the reasons for the recent rebound in commodity inflation." The report also said that despite the uncertainty, the financial system has been "resilient." (Jinshi)