Powell will make his remarks after the Fed has made its first interest rate decision since the start of the trade war.
The Federal Reserve announced on Wednesday that it would change benchmark interest rates as policymakers continue to assess uncertainty about inflation and economic conditions in light of federal policy changes.
As per the central bank's decision, the benchmark federal funding rate ranges from 4.25% to 4.5%.
The move was the rate the Fed left at that level at a previous meeting in January, and came just after three consecutive interest rate cuts at the previous meeting.
The Federal Open Market Committee (FOMC), which leads central bank monetary policy moves, announced that “uncertainty about the economic outlook has increased,” saying it focuses on risk on both sides of its dual mission to promote maximum employment and maintain 2% inflation over the long term.
Federal Reserve Chairman Jerome Powell said tariffs are factoring in business and consumer expectations of inflation. (Getty Images/Shen/Bloomberg via Getty Images
In addition to announcing its decision on interest rates, the FOMC has released a summary of its economic forecasts showing that central bank policymakers are forecasting two 25-standard interest rate cuts this year, followed by two of its sizes in 2026 and one in 2027.
Policymakers predicted slower economic growth and lower unemployment rates in 2025 than the last forecast released in December.
They are projected to see unemployment rates of 4.4% in December, up from the last forecast of 4.3%, compared to an actual gross domestic product (GDP), which is down from the 2.1% estimate at the end of 2025. The unemployment rate in February was 4.1%.
The Fed's economic forecast also shows that the Personal Consumption Expense (PCE) index, a policymaker's preferred inflation gauge, was 2.7% at the end of this year, higher than the 2.5% estimate released at the end of last year. This is slightly above the 2.5% PCE reading the Department of Commerce reported in February.
Fed Chair Jerome Powell said in an opening statement at a press conference, “The short-term measure of inflation expectations has recently risen, and we see it in both market-based and survey-based measures. And both respondents, consumers and businesses refer to tariffs as a driver.”
This is a developing story. Please check for updates.
