The president of the US Federal Bank (Fed) Jerome Powell will reiterate to legislators that the Central Bank is in no hurry to reduce interest rates as officials await more clarity on their financial impact dictatorial by President Donald Trump.
“The impact of the duties will depend, among other things, on their final level,” Fed’s Powell said Tuesday (24.6.2025) in observations prepared for delivery in Congress. “At the moment, we are in a good position to wait to find out more about the possible course of the economy before considering any adjustments to our policy stance.”
Powell’s deposition before the Committee on Financial Services of the House of Representatives is in the wake of the Fed decision last week to leave interest rates unchanged at a range of 4.25% – 4.5%.
Central Bank’s waiting stance has outraged Trump, who has consistently demanded lower interest rates and has argued that the Fed maintains high borrowing costs for the US government by keeping interest rates firmly.
Trump comments
“” Very slow “. Jerome Powell, of the Fed, will be in Congress today to explain, among other things, why he refuses to reduce the interest rate, “Trump Social told Truth this morning. “I hope Congress will really work this very stupid, hard -core person, over. We will pay for his impotence for many years. “
Powell and several other policy -making managers have highlighted the increased economic uncertainty resulting from enhanced use of duties by the Trump government, as well as other policy changes, to justify the stay of interest rates at present. Many meteorologists expect that duties will exert on inflation and affect economic growth, although these estimates have significant uncertainty.
Trump has often shifted to the details of his tariff policy, and the government says he is working on trade agreements that could affect the nature and level of duties.
“Expectations for this level, and therefore on the relevant financial impacts, have reached their climax in April and have since diminished,” Powell said in a statement that greatly echoed the observations he made last week. “Even so, duty increases this year are likely to push prices and burden economic activity.”
Powell said the impact of duties on inflation could be short -lived or possibly more persistent.
The effect of duties
Avoiding the last result “will depend on the size of the tariff impact, how much time it takes to fully pass on prices and, ultimately, maintaining long -term expectations for inflation on a good basis,” he said.
Financial data so far have shown a limited impact on tariffs. Fed Governors Christopher Waller and Michelle Bowman have highlighted this dynamic, including factors, arguing that the Fed could already reduce its next meeting in July.
In the meantime, Powell described the total economy and the labor market as stable. He said inflation has fallen significantly from the high levels it had reached in mid -2022, but it is somewhat increased above the Fed’s 2%target. He added that beyond about the following year, most measurements of long -term expectations remain consistent with the Fed’s goal of inflation.