According to online reports, Federal Reserve Chairman Powell made it clear that the Federal Reserve will not rush to respond to the sweeping tariffs imposed by the Trump administration, nor will it respond to financial market turmoil triggered by fears of a global economic recession. Powell told a conference in Virginia on Friday that 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 become clearer before cutting rates. He also emphasized that while inflation remains high, the central bank has an obligation to ensure that a temporary increase in tariffs on prices does not turn into a more lasting increase. Julia Coronado, founder of research firm MacroPolicy Perspectives, said: "The Fed cannot insure the economy as it did in the trade wars in 2018 and 2019 because inflation is too high and above their target." She expects a recession in the second half of this year. "Even if they conclude they need to cut rates, they may cut rates later and slower because we will be in an inflationary impulse."