Summary
The U.S. Federal Reserve, led by Chair Jerome Powell, plans to wait before making changes to its interest rates, despite President Trump’s calls for immediate cuts. Powell explained that the Fed aims to watch how tariffs and the economy affect inflation before deciding on rate adjustments.
Key Facts
- The Federal Reserve is waiting to see how the economy and inflation change before altering interest rates.
- President Trump has asked for immediate interest rate cuts, but the Fed disagrees.
- The Fed’s main job is to control inflation, not to comment on trade policies like tariffs.
- Many economists predict inflation will rise this year, partly due to tariffs.
- The Fed expects more information about the effects of tariffs on inflation in the coming months.
- Recent Fed decisions showed no immediate plans to cut interest rates, but potential future cuts are considered.
- Federal Reserve officials expect two small interest rate cuts by the end of the year.
- Trump, who appointed Powell, has publicly criticized him and seeks significant rate cuts.
