The president of the American federal reserve, Jerome Powell, testifies to an audience of the Chamber of Financial Services Committee on “The Semi-Annual Monetary Policy Report of the Federal Reserve” on Capitol Hill in Washington, DC on June 24, 2025.
Saul Loeb | AFP | Getty images
The president of the Federal Reserve, Jerome Powell, said on Tuesday that the American central bank would now have a easier monetary policy for the price plan of President Donald Trump.
When asked during a panel if the Fed would have again reduced rates if Trump had not announced its controversial plan for samples from many foreign trade partners earlier this year, Powell said: “I think it’s true”.
“Indeed, we were careful when we saw the size of the prices and essentially all the inflation forecasts for the United States increased materially as a result of the prices,” added Powell during the event, which took place during a European forum of the central bank in Sirtra, Portugal.
Powell’s admission intervenes while the Fed has entered a model of detention on interest rates despite the mounting pressure of the White House.
The Fed last month again held the stable key borrowing rate. With this, the loan cost took place in a targeted range between 4.25% and 4.5% since December.
The Federal Open Market Committee of the Central Bank indicated via its said conspiracy that there could be two cuts by the end of 2025. However, Powell said at a press conference last month that the Fed was “well positioned” to stay in expected mode.
Powell said on Tuesday, when asked if July would be too early for a drop in rate, which he “really can’t say” and that “it will depend on the data”. According to the CME Fedwat tool,
“We are going to meet while meeting,” said Powell during Tuesday panel. “I would not take any meeting of the table or will not put it directly on the table. It will depend on the evolution of the data.”
Powell’s future at Fed
The relentless position of the Fed attracted the anger of Trump and its administration, which publicly urged Powell for the recent lack of movement of the Central Bank. Last week, Trump called Powell “terrible” and said that he was “a very average mental person”.
When asked on Tuesday if he would stay as the governor of the Fed after the end of his pulpit the end of next year, Powell replied: “I have nothing for you on this subject today.” Powell’s mandate as governor should present himself to 2028, although his role as president ended in 2026.
The global trade policy and Trump’s attacks against Powell took the scene at the Tuesday event, where the Fed chief in the United States was flanked by the panel by other leaders of central banks around the world. Other leaders of the International Central Bank asked questions on which they would act in the same way as Powell in his position and if foreign countries were detached from the United States
Trump is once again, the pricing policy again has put the world markets and monetary decision -makers on the tip. The American president first unveiled a wide and steep sampling plan on several foreign countries in early April, before delaying many of the most intense rates shortly after the American markets fell.
The American stock market has more than criticized the losses recorded in the wake of the initial announcement of Trump, with the S&P 500 Back to summits of all time in recent days. However, market players and monetary policy leaders always say they are uncertain about the future of world trade, as well as its impact on stock markets and the world economy.
“Everything I want – and everyone from the Fed wants – is to deliver a price that has price stability, maximum employment, financial stability,” said Powell. “What keeps me awake at night is: how can we do that? I want to give my successor a good -oming economy.”
