oof.
Federal Reserve Chair Jerome Powell expressed concern in a speech Wednesday that the central bank could find itself in a dilemma between controlling inflation and supporting economic growth.
Guess the market didn't have that response priced in.
https://www.reuters.com/world/us/latest-updates-fed-chair-jerome-powell-speak-us-economic-outlook-2025-04-16/Although admittedly I am confused as to why the market would sink again. Clearly investors know tariffs are not great, they have already made that judgement and the markets pulled back some to reflect that. All really Powell did was get on stage and say yep Tariffs are bad and things will be more expensive and it will have a negative impact on things.
But everyone already knew that....
The prime rate drops and there would be a massive home buying and construction boom IMO..The Tarrifs can even be at the elevated levels, but what can't be is volatility and uncertainty of them changing on whim. Business can navigate whatever the circumstances are, but when Tarrifs change so fast invalidates so many arrangements.
The engineering firm my wife works at still has growing work orders, hiring like mad engineers and welders. The office contracts used to have way more flexibility on time, but last months, it's 48 hours window for most of the contracts she is on. Huge price changes. Ultimately business good, but can't optimize with that degree of uncertainty.
This post was edited by RedFromWinter on Apr 16 2025 05:21pm