Summary

Federal Reserve Chair Jerome Powell warned of a potential U.S. economic slowdown due to uncertainty surrounding Trump administration policies on trade, immigration, fiscal policy, and regulation.

While inflation and job growth remain stable, Powell emphasized that the Fed will not rush to cut interest rates and will wait for clearer economic signals.

Recent tariff announcements on Mexico, Canada, and China have added volatility.

Investors anticipate rate cuts later in the year, but the Fed is expected to hold rates steady at its March meeting.