Federal Reserve (FED) President Jerome Powell said on Friday, US President Donald Trump’s tariffs are greater than expected and they faced higher inflation and slow growth risk and prepared at the annual conference of the Business Editing and Writing Association on Friday.
IMPORTANT INTERESTS FROM POWELL SPEAK
“It’s too early to tell you what the right way will be for the monetary policy.”
“Before considering policy adjustments, he was well positioned to expect more clarity.”
“Tariffs that are likely to increase inflation in future neighborhoods; more permanent effects are possible.”
“Tariff increases will be significantly greater than expected, it also applies to economic effects.”
“Most of the long -term inflation measurements cooperate well.”
“The FED’s obligation is to make sure that the price levels of the price levels have not become an ongoing inflation problem.”
“Data solid growth, the labor market is in balance, much closer to the 2% target of inflation, but it shows that it is still upstairs.”
“Surveys are more uncertainty due to new federal policies, especially trade.”
“The Fed closely follows the tension between hard and soft data.”
“The unemployment rate is still low in range, the labor market is not an inflation source.”
“2% progress towards inflation target has slowed down.”
Market Response to Powell Speech
The US dollar holds the ground after these statements. During the press, the USD index increased by 0.7% at 102.65.
US dollar price today
The following table shows the percentage of US dollars (USD) percentage against the large currencies listed today. The US dollar was the most powerful against the Australian dollar.
| USD | EUR | Gbp | JPY | Cad | Volume | Nzd | Chf | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.65 % | 1.33 % | -0.15% | 0.85 % | 4.87 % | 3.69 % | -0.36% | |
| EUR | -0.65% | 0.72 % | -0.78% | 0.27 % | 4.20 % | 3.07 % | -0.95% | |
| Gbp | -1.33 % | -0.72% | -1.49 % | -0.47% | 3.48 % | 2.33 % | -1.66 % | |
| JPY | 0.15 % | 0.78 % | 1.49 % | 0.98 % | 4.98 % | 3.75 % | -0.22% | |
| Cad | -0.85% | -0.27% | 0.47 % | -0.98% | 3.93 % | 2.78 % | -1.19% | |
| Volume | -4.87% | -4.20% | -3.48% | -4.98 % | -3.93% | -1.11% | -4.97 % | |
| Nzd | -3.69 % | -3.07% | -2.33% | -3.75 % | -2.78% | 1.11 % | -3.90% | |
| Chf | 0.36 % | 0.95 % | 1.66 % | 0.22 % | 1.19 % | 4.97 % | 3.90 % |
The heat map shows the percentage of the major currencies to each other. When the bid currency is selected from the top row, the base currency is selected from the left column. For example, if the US selects the dollar from the left column and switch to the Japanese Yen along the horizontal line, the percentage change displayed in the box will represent USD (Base)/JPY (quote).
Tariffs FAQ
Tariffs are certain goods imports or customs duties received in a product category. Tariffs are designed to help local manufacturers and manufacturers to be more competitive in the market by providing a price advantage compared to similar goods that can be imported. Tariffs are widely used as means of protectionism together with trade barriers and import quotas.
Although tariffs and taxes create government income to finance public goods and services, they have several distinctions. Tariffs are paid at the entrance harbor and taxes are paid during purchasing. While taxes apply to individual taxpayers and enterprises, tariffs are paid by importers.
There are two schools of thought among economists about the use of tariffs. While some claim that tariffs are necessary to protect domestic industries and address trade imbalances, others see them as a harmful tool that can increase the higher prices in the long run and encourage the schedules of the Simsekkara for taste.
During the presidential elections in November 2024, Donald Trump clearly stated that he plans to use tariffs to support the US economy and American manufacturers. In 2024, Mexico, China and Canada formed 42% of total US imports. According to the US Census Bureau, Mexico came to the fore as the best exporter with $ 466.6 billion. Therefore, Trump wants to focus on these three countries while applying a tariff. It also plans to use income from tariffs to reduce personal income taxes.
