Federal Reserve Chair Jerome Powell used his annual Jackson Hole keynote speech to paint a picture of an economy facing policy-driven headwinds and rising uncertainty. He pointed to sharply higher tariffs “across our trading partners” that are reshaping global commerce, and to tighter immigration rules that have abruptly slowed labor-force growth.
Over a longer time horizon, Powell added, shifts in tax, spending, and regulation could weigh on productivity — yet no one knows where these policies will land or what their lasting effects will be. The throughline was caution, as multiple shocks are hitting both demand and supply, and the Fed can’t easily offset structural changes.
