U.S. Importers Bear Tariff Costs, Says Fed Chair Powell

Federal Reserve Chairman Jerome Powell announced on September 24 that U.S. importers are primarily absorbing tariffs, reducing their impact on consumer inflation.

This approach, aimed at limiting long-term inflation, signifies that tariffs may not significantly affect digital assets, maintaining market stability in crypto, despite broader macroeconomic concerns.

Powell: Importers Absorb Tariff Costs Amidst Inflation

Powell outlined that tariffs are not a major inflation driver, with most of the financial weight falling on importers and projecting tariff effects to conclude by late next year. This announcement aims to provide clarity amid ongoing discussions about the impacts of recent tariff adjustments.

With tariffs not significantly influencing consumer inflation, the Federal Reserve’s focus remains on stabilizing both inflationary pressures and the labor market. Powell highlighted a balance between addressing inflation and labor market risks.

Importers, rather than consumers, are bearing most of the burden of recent tariffs. – Jerome Powell, Chairman, U.S. Federal Reserve

Crypto Markets Steady Despite Tariff Discussions

Did you know? In the 2018-2019 U.S.-China trade skirmishes, market assets initially reacted with volatility, however, recent data indicates a more subdued effect on inflation, supporting Powell’s statements regarding current tariff impacts.

Ethereum (ETH) holds a market price of $4,161.84, according to CoinMarketCap. Its market cap stands at $502.35 billion, with a trading volume reaching $32.95 billion—a decline of 39.82% over 24 hours. Known as a robust asset, Ethereum faced a price drop of 0.12% in the past day but saw a substantial 60-day increase of 14.67%.

Binance CEO’s post on market trends asserts that while tariffs may not direct crypto asset trends, ongoing macroeconomic policies—including Federal Reserve decisions—remain pivotal in shaping financial and regulatory landscapes. As tariffs stand secondary in influencing digital markets, attention keeps shifting to monetary and employment dynamics driven by broader Federal Reserve actions.