Analyst: Powell has the opportunity tonight to make a public assessment of the impact of tariffs, should make the most of it.

On March 7th, Jinshi Data reported that Jerome Powell, Chairman of the Federal Reserve, will deliver a public speech tonight, providing an opportunity for him to publicly assess the impact of President Trump’s imposition of high tariffs on major U.S. trading partners on the economy. Although these policy changes have occurred rapidly and there is not much visible impact in data other than daily fluctuations in the stock, bond, and forex markets, when viewed collectively, they have made the risk of ‘stagflation’ a topic of discussion among forecasters again. Adam Posen, President of the Peterson Institute for International Economics in Washington, stated that the Federal Reserve’s responsibility is not to formulate trade or tax policies, and the government can do whatever it wants. However, the Federal Reserve should more clearly point out that based on all existing mainstream evidence, tariffs are more likely to lead to inflation. At a time when President Trump is about to implement tariff policies, the inflation level is not low.