Jerome Powell’s April 16 Speech: Tariffs May Trigger Inflation-Growth Trade-Off, Fed Stays Cautious
Federal Reserve Chair Jerome Powell acknowledged signs of slowing growth in the U.S. economy during his April 16 remarks at the Economic Club of Chicago, while emphasizing the importance of stable inflation expectations in a time of rising tariffs and geopolitical uncertainty. On April 16, 2025 (local time) , Jerome Powell delivered a closely watched speech in Chicago, offering a comprehensive overview of the U.S. economic outlook, the current monetary policy stance, and emerging risks—most notably from escalating tariff policies . His remarks reflected a careful balancing act: maintaining price stability without derailing the labor market amid weakening growth indicators. Solid Labor Market, But Growth Headwinds Are Mounting Powell opened his remarks by reaffirming that the U.S. economy remains on a relatively strong footing, with the labor market near maximum employment . However, the latest data, including projections for Q1 GDP , suggest that growth is moderating , particularl...