What Fed must do now after Jerome Powell's Jackson Hole epiphany
Powell's comments open door to September rate cuts as Treasury yields tumble
By Peter Navarro Fox News
Published August 27, 2025 5:00am EDT
Last Friday in Jackson Hole, Federal Reserve Chairman Jay Powell finally – and grudgingly – admitted what the Trump team has been saying all along: tariffs don’t fuel inflation.
At most, tariffs create a one-time adjustment in prices, not the kind of runaway spiral that demands punishing rate hikes. And even that one-time bump may be negligible if, as we have long argued, foreign exporters – not American consumers – shoulder most or all of the burden.
The implication is clear: whether the impact is zero or merely a one-time step-up in prices, there is absolutely no justification for the Fed to hide behind "tariff uncertainty" as an excuse for overly restrictive interest-rate policy.
This really is a historic epiphany from a Fed chair who has long misunderstood the power of Trumpnomics – the four beautiful horsemen of economic growth and price stability: tax cuts, deregulation, strategic energy dominance and fair trade.
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https://www.foxnews.com/opinion/what-fed-must-do-now-after-jerome-powells-jackson-hole-epiphany
