Federal Reserve Highlights Uncertain Impact of Tariffs on U.S. Inflation

According to Odaily, the Federal Reserve released its latest monetary policy report to Congress on Friday, indicating a rise in U.S. inflation and a robust labor market. The report suggests that the effects of U.S. President Donald Trump's tariff measures may only be beginning to manifest. The Federal Reserve reiterated its stance that it can afford to wait for clearer conditions before taking action. The report stated, "The impact of increased import tariffs on U.S. consumer prices this year is highly uncertain, as trade policy continues to evolve. It is too early to assess how consumers and businesses will respond." Although the effects of tariffs cannot be directly observed in official consumer price statistics, the pattern of net price changes across various goods this year suggests that tariffs may be one of the reasons for the recent rise in goods inflation. Despite the uncertainties, the report noted that the financial system has remained "resilient."