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 ...
Unfortunately, not only has TDS politics poisoned DA’s and AG’s and Judges and other government positions, it has poisoned The Fed.
Trump’s Handwritten Kill Shot: The Fed’s Fake Independence Just Got Torched
The Federal Reserve needs to be abolished.
The last 3 months, inflation was .1%, .2%, then .1%.
Tariffs have not hurt us.
Powell's FED raised interest rates in 2022 and 2023. However, IMO Powell should not speculate publicly about inflation.
It is simple: Democrats/Powell want America to fail and people to suffer so Democrats regain power.
What tariffs? Most tariffs are paused. We had about a week of Liberation day tariffs.
Tariffs are ongoing since he announced them. He only cut them back from the high. Almost every country has 10% minimum and some it is higher.
Yes, as I posted.
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