FED Chairman Jerome Powell Issues New Statement on Interest Rates and Tariffs

Speaking at the ECB Central Bank Forum, organized annually by the European Central Bank (ECB) in Sintra, Portugal, the Fed Chairman stated that the US economy is in good shape and inflation is moving towards the 2% target. Jerome Powell stated that the U.S. economy is in a solid state and inflation is developing as expected when excluding the impact of tariffs. He stated that the FED has paused interest rate cuts to assess the impact of tariffs and that waiting is the right approach as long as the economy remains strong. Powell added that if it weren't for Donald Trump's tariffs, they would have cut interest rates a long time ago. The U.S. economy is in good shape and inflation continues to decrease towards the target of 2 percent. If we overlook tariffs, we can say that inflation is developing in the direction we desire. When we saw that customs duties were too high, we started waiting for interest rates to decrease. In the current situation, we believe that the best thing to do before starting to cut interest rates is to wait and gather more information. "We are witnessing a gradual cooling of the labor market. But it has not yet reached the level we desire." Interest Rate Cut Signal in July Powell stated that most Fed members expect interest rates to be cut by the end of this year, but he noted that it is still unclear whether July is too early for a rate cut. "I cannot say whether July is too early to cut interest rates or not. I will not rule out the possibility of cutting interest rates from any meeting; it all depends on the data," Powell said. We Have Lowered Interest Rates For A Long Time Finally, Powell answered the question: "Will you lower interest rates without tariffs?" Powell answered this question in a way that made Trump angry when he said, "If it weren't for Trump's tariffs, we would have lowered interest rates a long time ago." Related news: FED Chairman Jerome Powell seems to be the right one! U.S. President Donald Trump targets Powell, calling him "n. stupid" once again! - "I have started negotiating!" Although Powell did not specify a date for the interest rate cut, the price of Bitcoin rose from $106,400 to over $107,000 in the final minutes after he hinted at a rate reduction.

Trump and Powell Compete Donald Trump harshly criticized Powell's interest rate policy, while asserting that the economy is in good shape and emphasizing that interest rate cuts are necessary. At this time, Trump emphasized that interest rates need to be cut aggressively to stimulate the economy, while Powell continued to assert that interest rates should not change and should proceed depending on data due to concerns about inflation and instability caused by tariffs.