Fed Chair Powell (Q&A) says tariffs should in theory be one-time effect, the theory is probably right, but the time it takes to get through the economy is uncertain

Fed Chair Powell (Q&A) says tariffs should in theory be one-time effect, the theory is probably right, but the time it takes to get through the economy is uncertain.

Fed Chair Powell's comments suggest that while tariffs can be expected to influence inflation as a one-time effect, the actual timeline for their impact on the economy remains unpredictable. This uncertainty could weigh on market sentiment, particularly concerning future Fed rate decisions and the USD's strength against other currencies, as traders grapple with the nuances of tariff implications for inflation and growth.