Powell on tariffs' impact on prices

• Most of the 'overrun' in goods prices is attributed to tariffs, viewed as a one-time price increase.
• Core PCE inflation, excluding tariff effects on goods, is running 'just a bit above 2%'.
• Ongoing disinflation is observed across all categories of services, which is considered a 'healthy development'.
• If tariff effects peak and subside, it could signal an opportunity for the Fed to 'loosen policy'.

Federal Reserve Chair Jerome Powell discusses the impact of tariffs on prices, noting that most of the goods price inflation is due to tariffs, which he considers a one-time effect. He highlights that core PCE inflation, excluding tariffs, is near 2% and that services are showing ongoing disinflation. This suggests a potential path for future policy loosening if tariff effects subside.