Powell Holds Steady Amid Tariff Tensions
U.S. Federal Reserve Chair Jerome Powell discussed the potential impacts of rising tariffs on inflation and interest rates. Despite President Trump's demand for cuts, the Fed decided to maintain the current rate, awaiting further economic indicators before making policy changes.
Jerome Powell, the Chair of the U.S. Federal Reserve, addressed the potential impact of increased tariffs on inflation and interest rates during a congressional hearing. The remarks came as President Trump urged for rate cuts while Powell emphasized patience and further observation before any policy adjustments.
Powell reaffirmed the central bank's decision to hold interest rates steady between 4.25% and 4.5%, a stance supported by Fed officials despite Trump's calls for prominent cuts. Recent projections hint at possible future adjustments, while ongoing economic shifts due to tariffs remain under scrutiny.
Highlighting the broader economic context, Powell noted the current strength of the economy with low unemployment and moderate inflation. However, he underscored the uncertainties surrounding Trump's trade policies, which are crucial for future Fed decisions.
(With inputs from agencies.)
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