Federal Reserve Chairperson Jerome Powell has made clear that the central bank will not rush to react to sweeping tariffs imposed by the Trump administration or to financial marekts triggered by fears of a global recession. Speaking at a conference in Virginia on Friday, Powell said tariffs could have a significant impact on the U.S. economy, including slowing growth and rising inflation. But he added that Fed officials will wait until those policies are clearer before cutting interest rates. He also stressed that the central bank has an obligation to ensure that temporary increases in prices from tariffs do not turn into more durable increases while inflation remains elevated. Julia Coronado, founder of MacroPolicy Perspectives, a research firm, said: "The Fed can't insure the economy the way it did in the trade wars of 2018, 2019, because inflation is too high and above their target." She sees a recession in the second half of the year. "Even if they conclude they need to cut rates, they will probably cut them later and more slowly because we will be on an inflationary impulse."