Posted on 07/01/2025 11:57:59 AM PDT by CFW
Federal Reserve Chair Jerome Powell said Tuesday that the U.S. central bank would have eased monetary policy by now if not for President Donald Trump’s tariff plan.
When asked during a panel if the Fed would have lowered rates again this year had Trump not announced his controversial plan to impose higher levies on imported goods earlier this year, Powell said, “I think that’s right.”
“In effect, we went on hold when we saw the size of the tariffs and essentially all inflation forecasts for the United States went up materially as a consequence of the tariffs,” Powell said at European Central Bank forum in Sintra, Portugal.
Powell’s admission comes as the Fed has entered a holding pattern on interest rates despite mounting pressure from the White House.
The Fed last month held the key borrowing rate steady once again, keeping fed funds at the same range between 4.25% and 4.5% where it’s been since December.
The central bank’s policy-setting Federal Open Market Committee indicated via its so-called dot plot of members’ projections that there could be two cuts by the end of 2025. However, Powell also said at a press conference last month that the Fed was “well positioned” to remain in a wait-and-see mode.
(Excerpt) Read more at cnbc.com ...
He was wrong about Biden's policies having little to no effect on inflation, and it appears he is wrong once again.
“So, has anything actually gotten more expensive because of Trump’s tariffs?”
https://lite.cnn.com/2025/06/20/business/tariff-price-increases-inflation-explained
“Predictions from mainstream economists were dire after President Donald Trump launched his tariff campaign just a couple weeks after he began his second term in office: Prices would rise — sharply — they said, reigniting an inflation crisis that tens of millions of Americans had elected him to solve.
But that massive, tariff-induced inflation spike hasn’t materialized. Not even close.”
buwahahaha.
how can someone in such a position not understand reciprocal tariffs?
he should be fired for his incompetence if not his blatant disrespect for the laws of economics.
DROP THOSE RATES
oh sureeeeeeeeeeeeeeeeeeee..heck even Elizabeth Warren was telling Powell before the election to lower interest rates and he didnt do it, there were no tariffs then so what was his excuse
You lie!
“‘It Just Doesn’t Affect Trade’: Economist Art Laffer Breaks Down Why Tariffs Aren’t Inflationary”
https://dailycaller.com/2025/06/30/art-laffer-inflation-trump-tariffs/
“Economist Art Laffer explained on Fox Business Monday that tariffs do not drive inflation and said that the economic impact of import taxes is offset by corresponding price drops in exports.
On April 2, Trump announced reciprocal tariffs on several nations before declaring a 90-day “pause” on the tariffs days later. During an appearance on “Kudlow,” Laffer pushed back against claims that tariffs drive up inflation and explained his step-by-step case for why trade barriers don’t increase overall prices.
“Step one, tariffs on imports do raise the price of imports. But do remember that the U.S. exports to earn the wherewithal to buy imports from other countries. So if you have a tax on imports, it’s the exact same thing as a tax on export,” Laffer told guest host David Asman. “That’s called Lerner’s symmetry theorem, exactly the same. And, therefore, what happens is all of our exportable goods and services, their prices will fall. So the increase in prices of imports is matched 100% by the fall in the prices of exports. And the two net out to be zero.””
Wall Street economist who ripped Trump admits prez may have ‘outsmarted all of us’ on tariffs
“A prominent Wall Street economist who had slammed President Trump’s tariffs earlier this year now says that the president may have “outsmarted all of us” with his controversial trade policies.
Torsten Sløk, chief economist at investment giant Apollo Global Management, said that while the uncertainty surrounding trade policy has already started to weigh on the economy, Trump could lower tariffs on most of the US trading partners while using the levies to boost federal revenue.”
(which is exactly what’s been happening)...
Actually we’re it not for our current president getting elected is a real reason.
Jesu Christu, abolish the FED ! Damn politics and money.
I wonder if he’s lying or just stupid
“Confirms!!!!”
Foul Powell and his imaginary fig leaf.
Dammit.
He did in fact lower interest rates in September then again immediately after the election, though it was known days before the election he would cut them...
And when he lowered interest rates last fall 1) inflation was higher than now 2) all the economic indicators that predict inflation were shakier back then...
He continues to prove himself to be an ignorant, partisan hack...
Is Powell fighting the tariff increase by limiting the money supply? Can the reason for the exporters absorbing almost all of the tariff cost be attributed to Powell.
Lying and stupid are not mutually exclusive.
How about evil?
The “ experts” making those inflation projections have been wrong every month of Trump’s presidency
Same with GDP predictions
And many are grudgingly admitting Trump tariffs are working, with $121 Billion in revenue collected so far ( out of projected $250 Billion for this year) . The revenue collected from tariffs does not have to be collected from American taxpayers.
He’s not stupid
I say both- a stupid liar...
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