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Federal Reserve Chair Jerome Powell expressed concern about a potential dilemma between controlling inflation and supporting economic growth, largely due to President Trump's tariffs. While expecting higher inflation and lower growth, Powell stated the Fed's dual mandate goals might be in tension. He highlighted tariffs' likely impact on pushing the economy further from its goals, though he offered no immediate interest rate adjustments. Powell noted rising near-term inflation but a stable long-term outlook, while acknowledging slower economic growth in Q1. Markets anticipate interest rate cuts by the Fed later in 2025.

Prepared by Christopher Adams and reviewed by editorial team.