All right, I'll be honest with you.

We didn't plan to start with the Federal Reserve today.

But then Chair Powell said this.

As we noted in our statement, post-meeting statement,

we've judged that the risks to higher employment and higher inflation have both risen.

That, to be clear, is not great. From American public media, this is Marketplace.

In Los Angeles, I'm Kyle Rizzdahl.

It is Wednesday, today the 7th of May.

Good as always to have you along, everybody.

All right, quick, Chair Powell.

Tell me you are worried about stagflation without telling me you are worried about stagflation.

What looks likely, given the scope and scale of the tariffs,

is that we will see certainly the risks to higher inflation,

higher unemployment have increased.

And if that's what we do see,

and if the tariffs are ultimately put in place at those levels,

which we don't know,

then we won't see further

progress toward our goals. That right there is the whole macroeconomic challenge right now in a

reasonably tight 21 seconds from the Fed share. Higher inflation, because of the tariffs,

and a slowing economy, that's higher unemployment, right, because of the tariffs, have the central bank between a rock and a very hard place because the policy prescription, the interest rate move to fix one of those scenarios is exactly the opposite of the fix for the other.

Two more points from the press conference today.

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