Fed Chair Powell (Q&A) says a lot of the tariff effects have moved through the economy

• Most of the overrun in inflation is from tariffs, not demand
• Will see the tariff effect on goods pricing peaking over this year; if Fed sees that, that would tell the Fed it can loosen policy

Powell's remarks highlight that the inflation attributed to tariffs is largely factored into the economy, suggesting the peak impact may soon be behind us. This could signify a pivotal moment for the Fed's monetary policy, potentially supporting a dovish tilt in future rate decisions if inflationary pressures ease.