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Fed's Powell says open to idea that tariff-led inflation may be less than thought

BY Reuters | ECONOMIC | 06/24/25 11:22 AM EDT

June 24 (Reuters) - Federal Reserve Chair Jerome Powell on Tuesday said he is open to the idea that the inflation he and other Fed officials worry will be kindled by President Donald Trump's tariffs may prove to be less severe than thought.

Powell also told the House Financial Services Committee that he expects the Fed to get a lot of information about the inflation effects of tariffs in the next couple of months, but he expects to see more tariff impacts on the data starting with readings from June. (Reporting By Dan Burns)

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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