Jerome Powell Weighs In on Economy's Uncertainty Amid Trump Administration's Policies
The Federal Reserve chair has reassured an audience at the University of Chicago that the economy remains steady despite "elevated uncertainty" caused by the Trump administration's latest policies. Jerome Powell acknowledged that businesses and consumers are experiencing heightened uncertainty about the economic outlook, but stressed that the Fed doesn't intend to cut rates until it can assess the effect of these policies on the economy. The economy has shown solid footing for several quarters, with inflation remaining around 3% and unemployment hovering at 4%, but there is a growing sense of unpredictability.
- This heightened uncertainty may lead to a cautious approach by consumers and businesses, potentially slowing down spending and investment in the coming months.
- How will the ongoing policy changes under the Trump administration impact consumer confidence and the overall stability of the US economy in the next year?