Federal Reserve Chairman Jerome Powell says that the several rounds of tariffs launched by the Trump administration have yet to hurt the U.S. economy's performance.
Powell tells reporters at a Wednesday news conference that the import taxes on steel, aluminum and goods from China could be bad for the economy if they stay in place a long time.
Powell says that businesses have told Fed officials that the tariffs have led to concerns about supply chains being disrupted and raw materials costing more.
In a wide ranging news conference:
- Powell said Fed policymakers' decisions haven't been affected by political considerations. President Donald Trump expressed concern last month with the Fed's rate hikes, which could slow the economy and raise unemployment. "My colleagues and I are focused exclusively" on the Fed's mission to maintain low unemployment and stable inflation, Powell said during a press conference. "We don't consider political factors. That's who we are, that's what we do and that's the way it's always been for us," Powell added.
- Powell said the U.S. central bank didn't change its policy outlook by removing language from its Wednesday statement about being "accommodative" by setting rates to boost job growth and bring inflation to the 2 percent target. Powell says that eliminating this language from a statement after Fed officials ended a two-day meeting on Wednesday doesn't signal a change in policy, even though the change suggests that the Fed will keep hiking rates.
- Powell downplayed the risk that higher mortgage rates were increasing costs for would-be homebuyers. Powell cites the affordability index from the National Association of Realtors and tells reporters at a Wednesday news conference that homes are generally more affordable now than before the housing crisis. The affordability index assumes a 20 percent down payment. Most first-time buyers put less than 20 percent down, increasing their costs, according to Genworth Mortgage Insurance.
© Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.