Jae Powell to back down from federal reserve price discounts

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Jay Powell, head of the Federal Reserve, indicated that he will call for calls for interest rate discounts just July, saying that the American economy is still “strong” and the effects of President Donald Trump’s trade war and other “unconfirmed” policy changes.

Two members of the Federal Reserve Council – Chris, Wald, and Michel Bowman – said in recent days that They will support A reduction in the upcoming interest voting in the Federal Reserve in July, saying that recent inflation readings indicate that Trump’s tariff will have more prices on prices than fear.

while P. It is scheduled to admit on Tuesday that the effect of Trump’s tariff is now expected to be less dramatic than expected in April, Congress will tell that “this year’s definition increases are likely to rise and economic activity.”

Powell, whom he imposed as feeding The president ends in May 2026, and he was criticized by the US President for the decision of the Federal Open Market Committee to maintain interest rates. Trump described him as “Numbskull” and called for a reduction in standard borrowing costs of up to 3 percentage points.

The Federal Reserve reduced the costs of borrowing by 1 percentage point last year, but most FOMC officials say they want to wait and know how the impact of the trade war is running before lowering prices again.

In prepared notes, the Federal Reserve Chair will say that although the inflationary effect of US President’s policies “could be short”, “it was also possible that the inflationary effects were more stable.”

Meanwhile, the American economy is still “in a strong position”, indicating that Powell believes that interest rates can remain in place at the present time, without destroying the labor market in America.

“The unemployment rate is still low, and the labor market is in or near the maximum employment,” Powell will inform the Financial Services Committee for the House of Representatives shortly after 10 am.

In 4.25 to 4.5 per cent, the scope of the standard target in the Federal Reserve remains in restrictions – above the neutral level that does not limit or stimulate growth.

Federal reserve officials are increasingly divided into where the borrowing costs will end by the end of 2025.

While both Waller and Bowman wants discounts simply July, seven officials do not believe that interest rates will move ever this year.

Ten support members Discounts two or more than a quarter pointWith the remaining two parts of one pieces.