U.S. Dollar Index (USDIDX) futures are down around 0.25%. Meanwhile, several Federal Reserve officials have commented on the state of the U.S. economy and monetary policy. Below are key remarks from their recent statements.
Remarks by Mary Daly Kugler (Fed)
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In the near term, there could be an economic slowdown.
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It remains unclear how trade policy will ultimately unfold.
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The healthy state of the economy gives us time to make progress on inflation.
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So far, the economy has shown resilience in the face of disruptions.
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I see inflationary risks arising from tariffs.
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It's important to maintain stable long-term inflation expectations.
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Macroeconomic scenarios are essential amid high levels of uncertainty.
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Q1 GDP data showed that the real economy remains resilient.
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The labor market is stable and continues to demonstrate strength.
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Current monetary policy is moderately restrictive.
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The U.S. labor market remains stable and close to full employment.
Remarks by Michael Barr (Fed)
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Q1 GDP data included some anomalies.
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So far, data points to a strong economy and low unemployment.
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Economic growth has been strong over the past year and remains so.
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Tariff-related uncertainty increases the risk of higher inflation and slower growth.
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Artificial intelligence may require policymakers to reassess the natural rate of unemployment.
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The Fed could face a difficult position if both inflation and unemployment rise simultaneously.
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Monetary policy is currently well-positioned to adjust as conditions evolve.
Remarks by Thomas Barkin (Fed)
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Tariffs will lead to higher inflation in the U.S. and lower economic growth both domestically and abroad, starting later this year.
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The economic outlook is clouded by trade policies that have increased uncertainty, harmed consumers, and weakened business sentiment.
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I’m concerned that tariffs will lead to rising unemployment.
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