Federal Reserve chair blames Trump’s tariffs for preventing interest rates cut | US news
Federal Reserve President Jerome Powell blamed Donald Trump’s tariffs to prevent the exact interest rates requested by the President.
Trump repeatedly called Powell to reduce borrowing costs in the US economy. On Monday, the truth published a hand drawn note on the social platform: “You cost the United States-and you have continued to do this-you should reduce the argument too much!”
Speaking at the Central Banning Panel organized by the European Central Bank in Portugal on Tuesday, Powell said the Fed expects the President of the President to evaluate the inflationary influence of trade policies.
“In fact, we continued to wait when we saw the size of the tariffs, Pow Powell said to the event at Sintra. “Essentially, all inflation forecasts for the US rose financially as a result of tariffs. We did not excessively react, in fact, we did not react at all, we take some time.”
He asked the Fed would not further reduce the basic FED fund rate of 4.25-4.5%from the current target range, Powell said: “I think it’s true.”
Economists often expect tariffs to be inflationary, because paying them tends to transfer costs to consumers. However, some retailers can absorb some or all of the costs or pass to alternative suppliers, as they affect the effects.
Powell said: ik We have not seen much of the tariffs and we have not expected so far. We have always said that the timing, quantity and permanence of inflation would be extremely uncertain, and that it certainly proved it. ”
“We are watching. We expect to see higher readings during the summer, but we are ready to find out that it can be higher or lower or lower than we expected.”
Trump has always tried to weaken Powell since he returned to the White House. Treasury Secretary Scott Bessent suggested that the administration could benefit from the opening of an empty seat on the FED board of directors to appoint a potential successor.
Bloomberg told TV, “There is a seat opened in January. So perhaps Jay Powell left in May, we thought about the idea that the person would continue to be a chair,” he said.
Speaking with ECB President Christine Lagarde Powell, he claimed that it was too early to declare “tasks” to inflation; Bank Bank Governor Andrew Bailey said there are signs that the business market in the UK has slowed down.
