Posted on 07/01/2025 6:45:23 PM PDT by SeekAndFind
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.
On Tuesday, Powell was asked if July would be too soon for markets to expect a rate cut. He answered that that he “really can’t say” and that “it’s going to depend on the data.” Fed funds futures traders are pricing in a more than 76% likelihood that the central bank once again holds rates steady at the July policy gathering, according to the CME FedWatch tool.
“We are going meeting by meeting,” Powell said during Tuesday’s panel. “I wouldn’t take any meeting off the table or put it directly on the table...
(Excerpt) Read more at fortune.com ...
The Fed would have reduced rates by now if he hadn’t been a vindictive bastard.
“Jerome Powell confirms that the Fed would have cut by now were it not for tariffs”
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Eccl 10:2 confirms that Jerome Powell is FOS.
“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.
“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
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“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.
.
Powell is nothing more than a politic al hack.
Powell is wise to not allow the dollar to be completely destroyed at this point. Any cuts will likely boost asset inflation higher pushing homes even more unaffordable.
Trump has already said that if inflation returns, we can simply raise rates again, etc. However, once that inflation spirit rises, its hard to tame.
If the Fed drops the interest rate, at least some of these banks will be fatally impaired when revenues from such safe lending fall and can no longer cover the losses and imputed decline in the value of their overall loan portfolio. Many obscure loan assets ought to be marked down already, but the examiners seem to be going easy on the banks.
What Powell does not want is for this cauldron of trouble to tip over on his watch as Fed Chairman. He hopes for the problem to ease enough to make a clean get away at the end of his term.
Jerome Powell confirms he is a Deep State, Globalist hack.
Like we needed confirmation.
Tarrifs were announced two months ago, where is the uncertainty?
So to protect his reputation and legacy, he'll let the economy go to shit to keep some banks floating.
“... if not for President Donald Trump’s tariff plan”
... if not for President Donald Trump’s existence. The guy isn’t even clever with his sabotage to undermine Trump. It’s in your face.
More or less. In fairness to Powell and others in on it though, sometimes the economy nevertheless does well enough to solve or at least substantially diminish the problem. And if that happens, a recession and large bank bailouts can still be avoided.
When people can’t be fired…
The only Trump actions contributing to inflation I can remember were the stimulus payments, which Powell recommended.
“Powell is nothing more than a politic al hack.”
He acts like he doesn’t understand that Trump can make his life miserable in many ways.
I wasn't referring to his 2020 covid response, which was more than mere stimmie payments and other gimmies.
But, his recent comments more simply raising rates again if inflation returns:
“Let’s say there was inflation. In a year from now, raise your rates. I don’t mind, raise your rates. I’m all for it. I’ll be the one to be calling you,”
LIAR
Sometimes Trump announces he wants to do something and decides not to do it. Would cutting rates at this time be dangerous? Difficult question. Lost of moving parts.
Rates need to remain where they’re at and tariff policy needs to be cemented with trading nations at 10%.
The people that control Powell just don’t care.powell is an expendable pawn.
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