Jerome Powell, chairman of the US Reserve, attested during a hearing from the Financial Service Committee of the House Financial Services on “the half-year monetary political report of the Federal Reserve” on the Capitol Hill in Washington, DC, on June 24, 2025.
Saul Loeb | AFP | Getty pictures
The chairman of the Federal Reserve, Jerome Powell, said on Tuesday that the US Central Bank would have made monetary policy easier, if not for President Donald Trump's tariff plan.
When asked whether the Fed would have reduced interest rates again this year, Trump would not have announced his controversial plan to impose higher taxes for imported goods at the beginning of this year, said Powell: “I think that's true.”
“In fact, we went to the waiting loop when we saw the size of the tariffs and essentially all inflation forecasts for the United States have increased considerably as a result of the tariffs,” said Powell in the European Central Bank Forum in Sintra, Portugal.
Powell's approval comes when the FED entered a holding pattern for interest rates despite the increasing pressure of the White House.
The Fed last month kept the most important credit rate stable again and kept the Fed funds between 4.25% and 4.5% in the same area, where it has been since December.
The Central Bank's Policy Festuring Federal Market Committee announced the so-called score of the member projections that there could be two cuts by the end of 2025. However, Powell also said at a press conference last month that the Fed was “well positioned” to stay in the waiting-and-sea mode.
On Tuesday, Powell was asked whether July would be too early so that the markets would expect interest reduction. He replied that he “really can't say” and that “it will depend on the data”. The Futures -Futures dealers from Fed Funds prices for more than 76%that the central bank, according to the CME FEDWATCH tool, once again holds the interest rates at the July meeting.
“We'll meet with the meeting,” said Powell during the committee on Tuesday. “I would not take a meeting off the table or put it directly on the table. It depends on how the data develops.”
Powell's future at the Fed
The relentless position of the FED to keep the tariffs where they are for the time being has caught the anger of Trump and his administration, the Powell publicly warned the Powell for the failure of the central bank to reduce the loan costs. Trump called Powell “terrible” last week and said he was a “very average spiritual person”.
When he was asked on Tuesday whether he would remain as a Fed governor after his term as chairman next year, Powell replied: “I have nothing for her today.” Powell's term of office as a Fed chair ends in 2026, while his position as governor should go into 2028.
The global trade policy and Trump's attacks on Powell were the focus of the event on Tuesday, in which the US Fed boss was flanked by other leaders of central banks from all over the world. The international central bank leaders asked questions that are the question of whether they act as a Powell if they were in his shoes and whether the nations come off the USA
Trump is back on the fact that tariff policy has used global markets and monetary political decision -makers. At the beginning of April, the president presented a plan for steep taxes for imported goods before many of the steepest tariffs delayed shortly after the fall of the US markets.
According to Trump's, the US stock market has announced the initial announcement with more than recurrent. S&P 500 In the last few days, for the first time since February. In investors and money makers, however, the future of global trade and its effects on global economic growth, profits and stock markets still feel uncertain.
“Everything I want – and everything that everyone wants in the Fed is to deliver an economy with price stability, maximum employment and financial stability,” said Powell. “What keeps me awake at night is: how do we do that? I want to hand over an economy to my successor in good condition.”