Fed Governor Bowman: Impact of tariffs “not yet clear”

Federal Reserve Governor Bowman said on Thursday that the U.S. economy was strong, noting that recent data had shown a drop in inflation last month, and while she acknowledged that investor fears that Trump's trade policies would hurt the economy had triggered the recent volatility in financial markets, she declined to make any comments on how tariffs would affect inflation or the labour market. At a hearing to review Bowman's nomination for Fed vice chairman of supervision, Bowman said, ‘We're watching and waiting to see how the path of these policies continues to evolve, and we'll learn about their economic impact.’ ‘It's unclear at this point because we don't know what the economic policies are going to look like.’