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Jerome Powell doubles down on a word that has haunted him, saying pain from tariffs would be 'transitory'

Jerome Powell, the Federal Reserve Chair, has acknowledged that the term "transitory" was a misstep in describing inflation, which has proven to be more persistent than anticipated. In a recent interview, Powell discussed the ongoing challenges of managing inflation, which remains above the Fed's 2% target despite aggressive rate hikes. He emphasized the need for a careful approach to monetary policy, indicating that interest rates may need to stay higher for longer to combat inflation effectively. Powell also touched on the impact of tariffs and other trade policies, suggesting that these factors contribute to inflationary pressures. He stressed the importance of maintaining the Fed's independence and credibility in navigating the complex economic landscape.

Read the Full Fortune Article at:
[ https://fortune.com/2025/03/20/jerome-powell-transitory-inflation-tariffs-interest-rates/ ]