Breitbart Business Digest: The Fed Goes to War on Tariffs

Powell also emphasized the uncertainty of this new terrain, noting: “We haven’t been through a situation like this… The size, duration and timing of the pass-through are all highly uncertain.” That phrasing didn’t just acknowledge unknowns—it framed them as a justification for staying the course. Responding to concerns over data dependence, he said, “As long as the economy remains solid and inflation is moving down, policymakers think the right thing to do is stay where we are with regard to policy.” But the key qualifier is the fear that tariffs could reverse those trends, prompting a defensive shift. Powell summarized the new policy stance succinctly: “With uncertainty as elevated as it is, no one holds these rate paths with a lot of conviction.” In other words, the Fed isn’t locked into a path, but it’s signaling that reevaluation—and not rapid easing—is on the table.

Author: John Carney, John Carney

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