Powell: External Institutions Have Raised the Likelihood of a Recession, Tariff Levels Higher Than Expected

BlockBeats News, April 4th, Federal Reserve Chair Powell stated in a keynote speech on the economic outlook: The Fed has not made a probability prediction of an economic recession, but external forecasters have increased this possibility. The tariff level remains higher than almost all forecasters' expectations, but it is still unclear where it will ultimately settle. The committee is not responsible for trade, immigration, fiscal, or other policies. A year from now, as the impact of the Trump administration's policies becomes clearer, uncertainty should diminish significantly. (FXStreet)

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Federal Reserve Chairman Powell is facing a serious policy dilemma: under immense government debt and political pressure, the Fed has had to abandon its independence and anti-inflation stance. Instead, it has resorted to measures like quantitative easing to finance the government, creating a situation of "fiscal dominance" similar to the Volcker era of the 1970s. This foreshadows the Fed's need to reinitiate loose monetary policy, which could potentially drive up the prices of assets like Bitcoin.

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