US #stocks extended already deep losses as traders focused on remarks from #FederalReserve Chair #JeromePowell amid global economic turmoil caused by #Trump’s sweeping #tariffs.

The S&P 500 was last down 4.3%, while the Nasdaq was down by about the same amount.

#Oil plunged to its lowest level since 2021 & commodities including #NaturalGas & #soybeans also dived as #China retaliated against #Trump's aggressive tariffs.

It's not the 1970s, #JeromePowell stresses [we’ll see]

We face risks for higher #unemployment, higher #inflation, that's difficult for a central bank

Powell also said:

Fed #independence on monetary policy is critical, to keep it should not get involved in other issues. [Trump also has expressed interest in making the Fed much less independent as he has done to other #FederalAgencies]

Earlier Friday, #Trump said it would be the "perfect" time for the Fed to lower interest rates.

#JeromePowell signaled that #TheFed would not be making any hasty decisions on #InterestRates.

"It's a good time to take a step back & let things clarify. That's why it's just too soon to say what the appropriate monetary policy response will be to these new policies. It is just too soon to say. We can't say with any confidence today." [cuz shit is crazy]

#JeromePowell says #TheFed does not forecast #recession probability.

"We don't actually, we don't make a probability forecast of how likely it is for there to be a recession, but many outside forecasters do, & many of them have raised the likelihood, …there's not much more I can say about that."

Powell stressed that he did not want to be part of a political discussion about #policy.

The Fed is not responsible for #trade, #immigration, fiscal or other policies.

Q & A:

#FederalReserve chair #JeromePowell was asked about recent #Trump comments on the #economy. He said he would not comment.

He also said:

#Unhappiness with economy seems rooted in #inflation persisting.

#Prices aren’t going down, people know they are paying more & are right not to be happy about it.

"The new administration is in the process of implementing substantial policy changes in four distinct areas #trade, #immigration, fiscal policy & regulation [#deregulation]," #FederalReserve chair #JeromePowell said.

"Our monetary policy stance is well positioned to deal with the risks & uncertainties we face as we gain a better understanding of the policy changes & their likely [adverse] effects on the #economy. It is not our role to comment on those policies."

"Looking ahead, higher #tariffs will be working their way through our #economy & are likely to raise #inflation in coming quarters," #JeromePowell said.

"While #uncertainty remains elevated, it is now becoming clear that tariff increases will be significantly larger than expected, & the same is likely to be true of the economic effects, which will include higher inflation & slower growth."

US #Stock indexes extend losses after #FederalReserve chair Powell remarks were released.

First question: how much of the higher inflation forecast is due to #TrumpTariffs?

#JeromePowell:

"It is going to be very difficult to have a precise assessment of how much of inflation is coming from #tariffs…. clearly some of it [#inflation], a good part of it is, is coming from tariffs.”

"But we'll be working & so will other forecasters to try to find the best possible way to separate non-tariff inflation from tariff inflation."

#JeromePowell on uncertainty & 'noise'

"As we parse the incoming information, we're focused on separating the signal from the noise as the outlook evolves."

"We do not need to be in a hurry to adjust our policy stance, & we are well positioned to wait for greater clarity."

"While these individual forecasts are always subject to uncertainty, …uncertainty today is unusually elevated. And of course, these projections are not a cmte plan or a decision. Policy is not on a pre-set course."

#JeromePowell on #tariffs

"Some near-term measures of #inflation expectations have recently moved up. We see this in both market & survey-based measures, & survey respondents, both consumers & businesses, are mentioning tariffs as a driving factor."