Powell says that the low price discounts in the federal reserve due to fears of inflation in the tariff

Federal Reserve Chairman Jerome Powell He said on Tuesday that the central bank was affected by reducing interest rates due to concerns about the high prices caused by customs tariffs on consumers, adding that the Federal Reserve is likely to reduce prices this year if not for the rural tariff fears.

Powell participated in a panel discussion on monetary policy at the European Central Bank Forum in Portugal with the leaders of other prominent central banks, including the European Union, the United Kingdom, Japan and South Korea.

Powell was asked if the Fed Reserve Bank has reduced interest rates more than now if it is not related to the drivers that motivate Fears of inflation.

“I think this is true,” Powell said. “In fact, we were suspended when we saw the size of definitions and where all inflation expectations in the United States rose mainly as a result of the definitions.”

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“So we did not overlook his reaction. In fact, we did not interact at all. We simply take some time – as long as the American economy is in a solid state, we believe that the wise thing to do is wait and learn more and see what these effects might have. Once again, they have never already appeared, and we are now waiting.”

Earlier in the conversation, Powell pointed out that the American economy is in a “very good situation” with inflation, as it has approached the goal of the Federal Reserve by 2 % in recent years, while the unemployment rate at 4.2 % is a sign of the health labor market.

Powell said: “Ignore the definitions for one second – inflation is largely acting as we expected and I hope it will be,” Powell said.

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Powell went on to say that the federal reserve is expected to be higher inflationary readings later this summer Customs tariff costs Their paths are made through supply chains, although he said that politicians will monitor whether these effects are larger or less than expected.

“We have not yet seen traces of customs tariffs, and we have not expected now,” Powell said. “We have always said that the timing, amount and continuity of inflation will be very uncertain, and it has definitely proven.”

“So we are watching, we expect to see during the summer some readings and higher readings. But we are ready to learn that it can be higher, less or in a closer time than we expected,” he added.

Federal Reserve Chairman Jerome Powell says the US economy is in a “strong situation” as the central bank weighs the timing of price cuts

president Donald Trump Powell has repeatedly criticized his behavior to his demand that the central bank reduce interest rates to stimulate more economic activity, called him “the master very late” and insult his intelligence, describing him as a “medium mental person” who has “low intelligence of what he does.”

Trump nominated Powell as head of the Federal Reserve lecture in 2017, and his criticism of dealing with Powell with monetary policy to the first period of the president.

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On Monday, the president sent a note to Powell, saying that the central bank “cost the United States wealth” not to reduce interest rates.

“You must reduce the rate a lot. Hundreds of billions of dollars are lost and there is no enlargement,” Trump wrote in the note, which was read by White House press secretary Caroline Levitte during a press conference.

Levitte added that Trump sent Powell a scheme that clarifies all countries in the world with less interest rate goals than the Federal Reserve.

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the feeding It left the rate of federal funds in the target range from 4.25 % to 4.5 % in each of its four meetings in 2025 so far. Its next meeting is scheduled to be held in late July.