Jun 19, 2025
Despite policy shifts under the Trump administration — from tariffs to immigration to federal spending — Federal Reserve Chair Jerome Powell says the U.S. economy remains on solid footing.
While the long-term effects of the policy changes continue to unfold, Powell signaled no urgency to adjust monetary policy, citing a strong labor market and easing inflation as signs of underlying resilience.
Advertisement
Speaking at the Society for Advancing Business Editing and Writing (SABEW) conference, Powell noted that inflation has fallen significantly from its 2022 peak, even though recent progress toward the Fed’s 2% target has slowed.
Thanks for subscribing!
Read the best of Moneywise in 5 minutes or less.
By signing up, you accept Moneywise Terms of Use, Subscription Agreement, and Privacy Policy.
“We look at inflation which is the change in prices and we’re seeing that it has come down quite a bit and unemployment is actually low, it’s very close to measures of maximum employment and the economy is growing,” he said.
New jobs data released in May showed 177,000 positions added in April. However, the unemployment rate remained unchanged at 4.2%.
While the numbers suggest stability, many Americans aren't feeling it. With the cost of everyday essentials still climbing, consumer sentiment continues to lag behind the Fed’s optimism — a disconnect that could shape economic policy in the months ahead.
The market looks fine on paper
Recent employment may reflect a relatively stable U.S. job market, but Americans remain anything but reassured. A January survey from résumé service MyPerfectResume found that 81% of U.S. workers are worried about losing their jobs in 2025.
The Trump administration has introduced sweeping policy changes, including large-scale federal layoffs, deep budget cuts, new tariffs and strict immigration enforcement. While the full impact on the labor market has yet to be felt, these measures have already stoked anxiety across multiple industries — from government agencies to tech and manufacturing.
“The March employment data is the calm before the potential tariff-related storms,” Dana Peterson, chief economist at The Conference Board, told CNN.
Workers' unease is understandable as they navigate a landscape filled with economic uncertainty and potential aftershocks. Even though job numbers haven’t plummeted, the fear of what lies ahead is keeping many employees on edge.
Must Read
- The ultra-rich use these 5 real estate strategies to build wealth while they sleep — you can start with just $100
- Here’s the average income of Americans by age in 2026. Are you keeping up or falling behind?
- Insurance companies profit most from drivers who auto-renew without shopping around. Comparing 100+ quotes takes 2 minutes and costs nothing
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Is inflation really cooling?
For many Americans, the sting of inflation is still being felt — especially at the grocery store.
Advertisement
According to the USDA’s Agricultural Marketing Service, egg prices have cracked wide open — rising 63% over the past year. Bureau of Labor Statistics data shows the national average price for a dozen eggs hit $5.90 in February, making a basic breakfast item feel more like a luxury.
Powell acknowledged the ongoing strain during his remarks at SABEW, attributing much of today’s high prices to lingering pandemic-era inflation. He emphasized that overall inflation has cooled since its 2022 peak — but that the road ahead is uncertain.
The Trump administration's new tariffs could reignite inflation in the coming months. Powell noted that it’s still too early to gauge the full impact, as details such as which goods will be affected and whether trade partners will retaliate remain unclear.
“Our obligation is to keep longer-term inflation expectations well-anchored and to make certain that a one-time increase in the price level does not become an ongoing inflation problem,” Powell said.
Now’s a good time to revisit your budget and take stock of where your money’s going. Small changes — like cutting back on impulse buys, pausing unused subscriptions or buying bulk — can free up more funds than you’d think. Even in times of uncertainty, a mindful approach to spending can bring a sense of control.
You May Also Like
- JP Morgan sees gold hitting $6,000/oz before 2027 — and a Gold IRA lets you hold the physical metal while deferring the tax bill. Get your free guide from Priority Gold
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAP
- Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how
- Millionaires under 43 are reshaping investing — just 25% of their portfolios are in stocks. Here’s where their money is going
Victoria Vesovski is a Toronto-based staff reporter at Moneywise covering personal finance, lifestyle and trending news. She holds degrees from the University of Toronto and New York University, and her work has appeared on platforms including Yahoo Finance, MSN Money and Apple News.
