Emerging market assets decline as Powell hints at worsening U.S. inflation

After Federal Reserve Chairman Jerome Powell stated that import tariffs could drive up prices and that their impact on inflation may persist, emerging market currencies and stocks fell for the second consecutive day. Previously, the Federal Reserve kept interest rates unchanged and reiterated expectations for two rate cuts in 2025, leading to a temporary decline in assets, but they subsequently fell again due to comments regarding tariffs. MSCI Emerging Markets Currency Index closed down 0.1%, while a similar stock index closed down 0.3%