Powell Sees Resilient Economy, Urges Fed to Stay Apolitical (Full Transcript)

Fed Chair Jerome Powell voiced optimism on growth, said tariff inflation has been limited, and stressed protecting the central bank’s independence from politics.

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[00:00:00] Speaker 1: Jerome Powell, he sounded pretty optimistic about the economy. He talked about how fast GDP is expected to be. He noted that consumer spending has been resilient and that the economy has been able to absorb all these different shocks from historically high tariffs. He noted, first of all, a lot of other countries have not retaliated against the president's tariffs. There's other companies that are absorbing the initial hit from tariffs, and they're not really all being passed on to consumers. And then there's also the fact that the announced tariffs have not been nearly as bad as what was originally announced by the president. Now, during the press conference, I had a chance to ask Fed Chair Powell what his advice would be to his successor.

[00:00:41] Speaker 2: Honestly, I'd say a couple of things. One is, you know, stay out of elected politics. Don't get pulled into elected politics. Don't do it.

[00:00:52] Speaker 1: So put it all together. This is a Fed that doesn't sound as worried about the economy, doesn't sound as worried about the job market. They're relieved that the inflation hit hasn't been worse. And they are fiercely protective over their independence from political interference.

Summary

Jerome Powell struck an optimistic tone about the U.S. economy, citing strong expected GDP growth and resilient consumer spending despite shocks from high tariffs. He suggested the tariff impact on consumers has been muted because many countries have not retaliated, firms are absorbing some costs, and implemented tariffs were less severe than initially threatened. In discussing advice for his successor, Powell emphasized avoiding involvement in elected politics, underscoring the Fed’s focus on independence. Overall, the Fed appears less concerned about the economy and labor market and relieved inflation pressures have not worsened.

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Title

Powell Signals Optimism, Downplays Tariff Inflation, Stresses Fed Independence

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Federal Reserve Remove

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GDP growth Remove

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consumer spending Remove

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tariffs

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inflation

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job market Remove

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Fed independence Remove

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political interference Remove

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Key Takeaways

Powell sounded optimistic about GDP growth and consumer spending resilience.
Tariff-related shocks have been absorbed with limited pass-through to consumers so far.
Lack of broad retaliation and less-severe implemented tariffs reduced feared impacts.
The Fed is currently less worried about the job market and broader economy than previously.
Powell advised his successor to avoid elected politics, highlighting Fed independence.

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Sentiments

Neutral: The passage conveys cautious optimism about economic resilience and muted inflation effects from tariffs while emphasizing institutional independence; the tone is measured and analytical rather than emotional.

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