Summary
The Federal Reserve, led by Chair Jerome Powell, is not planning to immediately lower interest rates despite President Trump's suggestions to do so. Powell is focused on watching the economy and understanding how tariffs might affect inflation before making any decisions about changing rates.
Key Facts
- Federal Reserve Chair Jerome Powell said the Fed will wait to see how the economy changes before lowering interest rates.
- President Trump has called for immediate cuts to these interest rates, but Powell disagrees with this approach.
- Powell testified before a Senate committee, where he explained the Fed's current position.
- Powell mentioned that tariffs could increase inflation, but the exact impact is still uncertain.
- The Fed's purpose is to control inflation and support employment, and it is not directly influenced by external pressure.
- Powell noted that any change in interest rates would depend on economic indicators such as inflation and unemployment.
- The Fed's committee recently agreed to keep interest rates stable for now, although future cuts are possible depending on the economy's evolution.
- Powell emphasized that the Fed's decisions are made for the benefit of the American economy, without distractions from political pressures.
