Powell (Fed): Waiting on Interest Rate Cuts

Federal Reserve (Fed) Chair Jerome Powell stated that interest rate cuts can wait, disagreeing with other Fed members and President Donald Trump.

During his hearing before the House Financial Services Committee, Powell mentioned that they are well-positioned to wait for more information on the economy's development before considering any adjustments to monetary policy.

Trump has criticized Powell for his restrictive monetary policy, calling him a 'fool' and 'stubborn'. He argued that the U.S. will pay the price for his incompetence and that interest rates should be lower.

Interest rates have remained stable at 4.25-4.50% since December. Powell, whose term ends in the spring of 2026, emphasized that the Fed's actions affect society and the economy.

He also pointed out that the tariffs imposed by Trump in January may increase prices and burden economic activity. Powell expects the consumer price index to rise to 2.3%.

At the last Fed meeting, governors agreed to keep interest rates unchanged, but several favor cutting them at the next meeting in late July.