Summary
Federal Reserve Chair Jerome Powell stated that the Federal Reserve will keep its interest rates unchanged for now to observe the impact of President Trump’s tariffs on the economy. Although President Trump wants the Fed to lower rates, Powell emphasized the importance of gathering more information on how these tariffs could affect inflation and the broader economy before making any changes.
Key Facts
- Jerome Powell is the Chair of the Federal Reserve.
- Powell said the Fed will hold interest rates steady to see the effects of tariffs on the economy.
- President Trump has criticized the Fed, asking for lower interest rates.
- Trump argues lower rates could reduce government debt interest costs and boost the economy.
- Powell mentioned that the Fed might have reduced rates without the tariff situation.
- Most economists believe the Fed will not lower rates before September.
- The Federal Reserve's key short-term interest rate is about 4.3%.
- Powell did not rule out a possible rate cut at the next policy meeting scheduled for July 29-30.
