Powell Says Fed's Base Case Is Inflation Will Be Transitory
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Federal Reserve Chair Jerome Powell reaffirmed the central bank's view that current inflation pressures, partially driven by tariffs, are likely to be temporary. The FOMC decided to hold the benchmark interest rate steady and slow down the balance sheet reduction, signaling a cautious approach to monetary policy.
March 25, 2025 | 6:00 am
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NEUTRAL IMPACT
Powell's comments suggest a stable monetary policy environment, which could provide short-term support for broad market indices.
The Fed's decision to hold rates steady and view inflation as transitory indicates a neutral to potentially positive market sentiment, which could support broad market ETFs like SPY.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 80