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Powell: Tariffs Uncertainty Leads to Delay in Rate Cuts
Summary: During a European Central Bank event in Portugal, Federal Reserve Chairman Powell stated that if not for President Trump's tariff policies, the Fed would have started cutting rates in 2025 and would currently adopt a looser monetary policy. When asked if the uncertainty caused by the current US tariff system has led to a delay ...
During a European Central Bank event in Portugal, Federal Reserve Chairman Powell stated that if not for President Trump's tariff policies, the Fed would have started cutting rates in 2025 and would currently adopt a looser monetary policy. When asked if the uncertainty caused by the current US tariff system has led to a delay in rate cuts, Powell confirmed, noting that almost all forecasts for US inflation have risen significantly due to the impact of tariffs. Powell acknowledged that despite increasing pressure from the US government, the Fed is still in a mode of maintaining interest rates. Powell also mentioned that given the current economic uncertainty, the Fed is still monitoring the situation to gather more information.
