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Trump's tariffs mean inflation probably won't slow anymore this year, Powell says

1. Fed's inflation forecast raised due to Trump's tariffs and economic uncertainty. 2. Powell notes tariffs slow growth and may delay inflation reduction. 3. Consumer price index shows a 2.8% inflation increase in February. 4. Interest rates held steady; two cuts projected for 2025 remain unchanged. 5. Poor consumer sentiment linked to high prices and policy changes.

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FAQ

Why Bearish?

Powell's comments on tariffs contribute to economic uncertainty, resembling past instances of market downturn.

How important is it?

The article addresses significant factors influencing the economy, especially inflation and tariffs, crucial for S&P 500.

Why Short Term?

Immediate market reactions expected due to heightened uncertainty around inflation and growth forecasts.

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