Powell says the Fed is ready to provide dollar liquidity to foreign central banks through swap lines

Jay Powell stated that if necessary, the Federal Reserve is prepared to provide dollar liquidity to foreign central banks via swap lines. He reiterated the importance of the Fed’s independence while managing expectations surrounding inflation and economic stability.

Increasing tariffs threaten price stability and complicate the Federal Reserve’s dual mandate of controlling inflation and supporting the labor market. Powell acknowledged the potential conflict between these goals, stressing the need to prioritize price stability to foster long-term employment health.