Investors cheered the Federal Reserve chair’s assessment. But some economists fear a case of déjà vu.

Jay Powell, the Fed chair, seems to have calmed markets in playing down the risks of Trump’s trade war. But his “transitory” call has others worried.Kevin Dietsch/Getty Images“Transitory” is back

Jay Powell wants businesses and investors to know: The Fed chair shares their concerns about President Trump’s tariff skirmishes as the economic outlook dims.

But there is a silver lining, he said Wednesday at a news conference. Tariff-driven inflation is likely to be “transitory” and just for this year. That’s the “base case,” he added, words that seemed to lift stocks. S&P 500 futures were climbing on Thursday as traders price in roughly two to three interest rate cuts this year.

But the “transitory” label — one that Treasury Secretary Scott Bessent has embraced

Keep reading this article on Andrew Ross Sorkin – Author New York Times.

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