Bloomberg's Tom Keene, Jonathan Ferro and Lisa Abramowicz discuss remarks from Fed Chair Jay Powell following the Federal Reserve's latest policy decision on a special edition of Bloomberg Surveillance.

Federal Reserve Chair Jerome Powell said officials are not in a hurry to adjust interest rates, adding tariffs could lead to higher inflation and unemployment. “If the large increases in tariffs that have been announced or sustained, they’re likely to generate a rise in inflation, a slowdown in economic growth and an increase in unemployment,” Powell said Wednesday at the conclusion of a two-day meeting in Washington. “The effects on inflation could be short lived, reflecting a one time shift in the price level,” he said. But it’s “also possible that the inflationary effects could instead be more persistent.”

Officials voted unanimously to keep the benchmark federal funds rate in a range of 4.25% to 4.5%, where it has been since December. In a statement, policymakers said they see a growing risk of both higher inflation and rising unemployment. “Uncertainty about the economic outlook has increased further,” the Federal Open Market Committee said in a statement. They added, “the risks of higher unemployment and higher inflation have risen.”

The S&P 500 index of US stocks and Treasury yields fell following the announcement, while the dollar pared gains.

Bloomberg's Tom Keene, Jonathan Ferro and Lisa Abramowicz discuss remarks from Fed Chair Jay Powell following the Federal Reserve's latest policy decision on a special edition of Bloomberg Surveillance.
Federal Reserve Chair Jerome Powell said officials are not in a hurry to adjust interest rates, adding tariffs could lead to higher inflation and unemployment.&nbsp;&ldquo;If the large increases in tariffs that have been announced or sustained, they&rsquo;re likely to generate a rise in inflation, a slowdown in economic growth and an increase in unemployment,&rdquo; Powell said Wednesday at the conclusion of a two-day meeting in Washington.&nbsp;&ldquo;The effects on inflation could be short lived, reflecting a one time shift in the price level,&rdquo; he said. But it&rsquo;s &ldquo;also possible that the inflationary effects could instead be more persistent.&rdquo;
Officials voted unanimously to keep the benchmark federal funds rate in a range of 4.25% to 4.5%, where it has been since December. In a statement, policymakers said they see a growing risk of both higher inflation and rising unemployment. &ldquo;Uncertainty about the economic outlook has increased further,&rdquo; the Federal Open Market Committee said in a statement. They added, &ldquo;the risks of higher unemployment and higher inflation have risen.&rdquo;
The S&amp;P 500 index of US stocks and Treasury yields fell following the announcement, while the dollar pared gains.

The economy and the markets are "under surveillance" as we cover the latest in finance, economics and investment. Listen to Jonathan Ferro, Lisa Abramowicz and Annmarie Hordern for the top interviews from Bloomberg Surveillance Television. And join Tom Keene and Paul Sweeney for the best conversations from Bloomberg Surveillance Radio. Watch Surveillance TV LIVE each mornings: http://bit.ly/3P7nstQ. Watch Surveillance Radio LIVE weekday mornings: http://bit.ly/3vTiACF. 

The economy and the markets are "under surveillance" as we cover the latest in finance, economics and investment. Listen to Jonathan Ferro, Lisa Abramowicz and Annmarie Hordern for the top interviews from Bloomberg Surveillance Television. And join Tom Keene and Paul Sweeney for the best conversations from Bloomberg Surveillance Radio. Watch Surveillance TV LIVE each mornings: <a href="http://bit.ly/3P7nstQ" data-destination="rte:bind">http://bit.ly/3P7nstQ</a>. Watch Surveillance Radio LIVE weekday mornings: <a href="http://bit.ly/3vTiACF" data-destination="rte:bind">http://bit.ly/3vTiACF</a>.

Tom Keene and Paul Sweeney have the economy and the markets "under surveillance" as they cover the latest in finance, economics and investment.

Bloomberg Surveillance

Instant Reaction: Jay Powell on the Fed Decision 

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/92485b1e-ff2d-47d6-86ac-b2d6014cd0ca/transcript

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