Jerome Powell, head of the US Federal Reserve, is witnessing during the hearing of the Financial Services Committee in the House of Representatives on the “semi -annual monetary policy report for the Federal Reserve” in the Capitol Hill in Washington, DC on June 24, 2025.
Saul Loop AFP | Gety pictures
Federal Reserve Chairman Jerome Powell said on Tuesday that the US Central Bank would have reduced the money policy now if not President Donald Trump’s plan.
When asked Through a plate If the Federal Reserve has reduced prices again this year, Trump has not announced his controversial plan to impose higher fees on imported goods earlier this year, “I think this is true.”
“In fact, we were suspended when we saw the size of the definitions and all inflation expectations in the United States in the first place that increased financially as a result of the definitions,” Powell said at the European Central Bank Forum in Centra, Portugal.
Powell’s acceptance comes when the Federal Reserve entered a pattern in interest rates despite the escalating pressure from the White House.
Last month, the Federal Reserve kept the main borrowing rate Fixed again, Maintaining FED money in the same range between 4.25 % and 4.5 % as it has been since December.
The Federal Open Market Committee that developed policies at the central bank indicated through the so -called DOT plot of members’ expectations that there could be discounts by the end of 2025. However, Powell also said at a press conference last month that the Federal Reserve was “In a good position” To stay in waiting and vision.
On Tuesday, Powell was asked whether July would be very early to expect markets to reduce prices. He replied, “He cannot really say” and that “he will rely on data.” Federal Reserve Funds, the two future traders are happy with the possibility of more than 76 % that the central bank holds fixed prices again in the July Policy gathering, according to what he said CME Fedwatch tool.
“We will meet at the meeting,” Powell said during a committee on Tuesday. “I will not deal with any meeting of the table or put it directly on the table. This will depend on how the data is evolved.”
The future of Powell at the Federal Reserve
The continuous federal reserve position to maintain the prices in which they currently fell on Trump’s anger and administration, who publicly warned Powell to the Central Bank’s failure to reduce borrowing costs. Trump last week called Powell “awesome” “A very medium mental person,” he said.
When he was asked on Tuesday if he would remain as a ruler in the Federal Reserve after his term as president next year, Powell replied, “I have nothing for you on that day.” The Powell Kurds of the Federal Reserve ended in 2026, while his position as a ruler is scheduled to run in 2028.
The global trade policy and Trump attacks on Powell occupied the headquarters at the Tuesday event, when the US Federal Reserve Chairman was moved on the plate by central bank leaders from all over the world. The leaders of the International Central Bank provided questions ranging whether they will behave as Powell if they are in its shoes, to whether the nations are separated from the United States
Trump again, the tariff policy again put global markets and monetary policy makers on the edge of the abyss. The President revealed for the first time a plan for sharp graphics on imported goods in early April, before delaying many of the most severe definitions after a short period of time when American markets retreated.
The US Securities Market contains more than registered losses in the wake of Trump’s initial announcement, with S & P 500 It struck its highest levels in the last days for the first time since February. But investors and monetary policy makers still report their feeling of uncertainty about the future of global trade and its impact on global economic growth, profits and stock markets.
“All I want – and everyone at the Federal Reserve – is to provide an economy with price stability, maximum employment, and financial stability,” said Powell. “What makes me wake up at night is: How can we do this? I want to deliver my successor in good condition.”
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