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Fed chair says bank would have cut rates this year if not for tariffs
Scripps News ^ | July 1, 2025 | Simon Kaufman , Maya Rodriguez

Posted on 07/01/2025 3:47:59 PM PDT by E. Pluribus Unum

Fed Chair Jerome Powell's latest comments come as President Trump has intensified his attacks on the Fed chair and continued to push for a rate cut.

Federal Reserve Chair Jerome Powell defended the central bank's decision to not cut interest rates so far this year and said it would have already cut rates if not for tariffs.

At a forum put on by the European Central Bank on Tuesday in Sintra, Portugal, Powell was asked if the Federal Reserve would have cut rates if not for President Donald Trump's tariffs.

"I think that's right," Powell said. "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. So, we didn't overreact. In fact, we didn't react at all. We're simply taking some time."

Powell also repeated his wait-and-see approach when it comes to interest rate cuts and how tariffs could impact the economy.

"As long as the U.S. economy is in solid shape, we think the prudent thing to do is to wait and learn more and see what those effects might be," he said.

Powell's latest comments come as President Trump has intensified his attacks on the Fed chair and continued to push for a rate cut.

On Monday, White House Press Secretary Karoline Leavitt said the president sent a note to Powell criticizing his decision not to lower the interest rate.

"Jerome, you are as usual too late," it said. "You have cost the USA a fortune and continue to do so. You should lower the rate by a lot."

The Fed cut interest rates in each of its final three meetings last year, but it has maintained rates between 4.25% and 4.5% through...

(Excerpt) Read more at scrippsnews.com ...


TOPICS: Politics/Elections
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1 posted on 07/01/2025 3:47:59 PM PDT by E. Pluribus Unum
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To: E. Pluribus Unum

In other words: “Trump’s fault!” (What a d*ck!)

Hopefully he can be arrested for lying to Congress about the “Fed Mahal”.


2 posted on 07/01/2025 3:50:28 PM PDT by PTBAA
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To: E. Pluribus Unum

I detest that filthy liar. He is merely a Trump hater. And a fool. In that order.


3 posted on 07/01/2025 3:50:51 PM PDT by frank ballenger (There's a battle outside and it's raging. It'll soon shake your windows and rattle your walls. )
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To: frank ballenger

I would have married my girl friend if she didn’t have another boyfriend.


4 posted on 07/01/2025 3:55:01 PM PDT by DIRTYSECRET
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To: E. Pluribus Unum

Well, he just dove into the deep end of the politics pool, didn’t he? Glub-glub.....


5 posted on 07/01/2025 3:55:07 PM PDT by blackdog ((Z28.310) Today's Democrat Party is nothing but very bad performance art. )
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To: E. Pluribus Unum

Powell drives by watching his hood ornament.


6 posted on 07/01/2025 3:55:44 PM PDT by SaxxonWoods (The road is a dangerous place man, you can die out here...or worse. -Johnny Paycheck, 1980, Reno, NV)
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To: E. Pluribus Unum

The creature from Jekyll Island needs to be abolished.


7 posted on 07/01/2025 3:56:05 PM PDT by mewzilla (Swing away, Mr. President, swing away!)
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To: E. Pluribus Unum

What BS. Anyone can say would have after the fact.


8 posted on 07/01/2025 3:57:22 PM PDT by Mlheureux
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To: frank ballenger

Trump hater? Trump gave him the job.


9 posted on 07/01/2025 3:57:26 PM PDT by napscoordinator (DeSantis is a beast! Florida is the freest state in the country! )
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To: E. Pluribus Unum

“Who controls the food supply controls the people; who controls the energy can control whole continents; who controls money can control the world.”

— Henry Kissinger


10 posted on 07/01/2025 4:04:29 PM PDT by odawg
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To: E. Pluribus Unum

Rubbish. Such obvious politicization of the fed raises the longstanding question of whether we should continue it in its convoluted and unaccountable existence


11 posted on 07/01/2025 4:05:28 PM PDT by faithhopecharity ("Politicians aren't born, they're excreted." Marcus Tullius Cicero (106 to 43 BCE))
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To: odawg

“who controls money can control the world.”

He must have been channeling Mayer Amschel Rothchild.


12 posted on 07/01/2025 4:18:22 PM PDT by dljordan (The Rewards of Tolerance are Treachery and Betrayal)
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To: dljordan

He was, but there are so many fact checkers saying the man never said that I did not quote it. He probably did say it.


13 posted on 07/01/2025 4:25:46 PM PDT by odawg
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To: E. Pluribus Unum

Yeah..... and if’n a frog had wings.......


14 posted on 07/01/2025 4:36:33 PM PDT by LastDayz (A Blunt and Brazen Texan. I Will Not Be Assimilated.)
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To: E. Pluribus Unum

Clown will be gone in the Fall.
I can wait.


15 posted on 07/01/2025 4:36:55 PM PDT by MotorCityBuck (Keep the change, you are filthy animal !!s)
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To: E. Pluribus Unum

He’s a liar.


16 posted on 07/01/2025 4:42:23 PM PDT by Cowgirl of Justice
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To: E. Pluribus Unum

This strikes me as a flaming lie.


17 posted on 07/01/2025 5:41:58 PM PDT by Carry_Okie (The tree of liberty needs a rope.)
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To: E. Pluribus Unum

I would’ve except for Trump and his Trumpian (spins wheel) ... um, tariffs! or does this say Eggs! Yes eggs.


18 posted on 07/01/2025 6:19:42 PM PDT by No.6
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To: E. Pluribus Unum

“U.S. inflation rises 0.1% in May from prior month, >>less than expected<<”

https://www.cnbc.com/2025/06/11/cpi-inflation-may-2025.html

.

“and essentially all inflation forecasts for the United States went up materially as a consequence of the tariffs.”

Prog forecast it UP.
Reality is it’s DOWN.

Normalcy has been achieved.

.


19 posted on 07/01/2025 6:32:53 PM PDT by TLI (ITINERIS IMPENDEO VALHALLA)
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To: E. Pluribus Unum
Am I the only one who thinks interest rates (other than credit cards) are finally reasonable? Savings pays decently if you get away from your local bricks and mortar bank. Car loans and mortgages aren't ridiculously high or low. If your business is a solid one it can make money expanding with current rates, but if it needed 1% to survive maybe it was too unstable to survive. The feds pushed rates down, down, down from the dot Com crash, through 9/11, through (and maybe causing with the low rates) the 2008 crash and recession and into COVID.

Every excuse was used to artificially pump up the economy more than batters in baseball's steroid era. Just let savings and loans go at a sane market rate.

20 posted on 07/01/2025 6:50:58 PM PDT by KarlInOhio (I refuse to call the left "progressive" because I do not see slavery to the government as progress.)
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