00:00Turning to monetary policy, we face a highly uncertain outlook with elevated risks of both higher unemployment and higher inflation.
00:08The new administration is in the process of implementing substantial policy changes in four distinct areas, trade, immigration, fiscal policy,
00:18and regulation.
00:20Our monetary policy stance is well positioned to deal with the risks and uncertainties we face as we gain a
00:26better understanding of the policy changes and their likely effects on the economy.
00:30While uncertainty remains elevated, it is now becoming clear that tariff increases will be significantly larger than expected.
00:37And the same is likely to be true of the economic effects, which will include higher inflation and slower growth.
00:43The size and duration of these effects remains uncertain.
00:48While tariffs are highly likely to generate at least a temporary rise in inflation, it's also possible that the effects
00:54could be more persistent.
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