Fed Chair Powell: Tariff Uncertainty Delays Rate Cuts

Odaily Planet Daily – Federal Reserve Chairman Jerome Powell stated at a conference in Sintra, Portugal, that if it were not for President Trump’s tariff policies, the Fed would begin cutting interest rates in 2025 and would currently be adopting a more accommodative monetary policy. When asked whether the uncertainty caused by the current U.S. tariff regime has led the Fed to delay rate cuts, Powell responded affirmatively. He added that due to the impact of tariffs, almost all forecasts for U.S. inflation have risen significantly. Powell acknowledged that despite increasing pressure from the U.S. government, the Fed has entered a mode of maintaining interest rates. He also noted that given the current instability in the economic outlook, the Fed is still observing the situation to gather more information. (Jin10)