Barclays: Federal Reserve's assumption of 'temporary' pressure on tariffs may catch it off guard

Odaily Planet Daily News: Barclays economists stated in a report that Powell's "temporary" remarks on tariff related price pressures and neglect of inflation expectations could catch the Fed off guard, just like during the pandemic. Powell made it clear on Wednesday that the committee assumes that price pressures related to tariffs will be temporary, although it takes a "wait-and-see" attitude towards whether price pressures will work in this way. Barclays said, "His tone seems too confident." The bank added that Powell is also reluctant to consider taking precautionary interest rate cuts to provide a buffer for the economy in the event of a serious deterioration in economic activity. Weak data indicators such as consumer confidence indicate this. They added that downplaying such risks could damage the credibility of the Federal Reserve, as it appears to be walking a very narrow path with dual risks at every step. (Golden Ten)