Powell: The increase in tariffs may drive up inflation, and the Federal Reserve is currently in a favorable position to adjust policy.

On June 19, Federal Reserve Chairman Powell stated that the impact of tariffs will depend on their levels, and the increase in tariffs this year may put pressure on economic activity and raise inflation. Avoiding persistent inflation ultimately depends on maintaining stability in long-term inflation expectations. The current position is favorable to wait for more information before making adjustments. The Federal Reserve will strive to prevent one-off inflation from turning into a deeply rooted situation. (Jin10)