Fed, in Risk-Management Mode, Warns on Tariff Hike Implications
Jerome Powell, chairman of the US Federal Reserve, during a news conference following a Federal Open Market Committee (FOMC) meeting in Washington, DC, US, on Wednesday, May 7, 2025.
Photographer: Tierney L. Cross/BloombergThis article is for subscribers only.
I’m Chris Anstey, an economics editor in Boston. Today we’re looking at the Fed’s latest thinking on the outlook. Send us feedback and tips to ecodaily@bloomberg.net. And if you aren’t yet signed up to receive this newsletter, you can do so here.
After Trump threatened to take US tariff rates to the highest levels in more than a century, the job of the Federal Reserve has effectively shifted from what it can do to nudge the economy toward its goals — stable 2% inflation and full employment — to how it can limit any damage.