Fed's Powell: Policy is in a good place to wait and see how current situation plays out

We are committed to getting inflation back to 2% on a sustained basisThere is tension between our two objectivesWe haven't really seen the downside risks to a large balance sheetPolicy in a good place to wait and see how current situation plays outTariffs likely a one-time increase adding between 0.5% and 1.0% to inflationTendency is to look through………………………………………………………………………………………………… We are committed to getting inflation back to 2% on a sustained basis There is tension between our two objectives We haven't really seen the downside risks to a large balance sheet Policy in a good... We are committed to getting inflation back to 2% on a sustained basis There is tension between our two objectives We haven't really seen the downside risks to a large balance sheet Policy in a good place to wait and see how current situation plays out Tariffs likely a one-time increase adding between 0.5% and 1.0% to inflation Tendency is to look through supply shocks but must keep an eye… For traders, releases like this can quickly shift rate expectations, currency direction, index futures and broad risk sentiment. Watch the next move in the dollar, front-end yields and index futures to see whether the market prices this release as a true surprise or only a passing headline.