Powell Discusses Economic Outlook, Tariffs Risks in Chicago

Federal Reserve Chair Jerome Powell is set to speak on the economic outlook at the Economic Club of Chicago, a highly anticipated event for investors and economists. Powell's address follows remarks from other Federal Reserve officials, including President Beth Hammack of the Cleveland Fed and Raphael Bostic of the Atlanta Fed, who have highlighted the uncertainty in the economy due to recent tariff policies. Bostic noted that the current state of the economy resembles a 'big pause' as businesses and households hesitate to make significant investments amid unclear policy directions. Fed Governor Christopher Waller also expressed concerns that the latest tariff policies could significantly slow economic growth and increase unemployment rates. He warned that while inflation remains high, the risk of recession may outweigh concerns about escalating inflation. These discussions reflect a growing consensus among Fed officials regarding the challenges posed by the administration's tariff moves.