Federal Reserve chair blames Trump's tariffs for preventing interest rate cuts

[BumRushDaShow]

Source: The Guardian

Tue 1 Jul 2025 11.21 EDT
Last modified on Tue 1 Jul 2025 15.18 EDT


The chair of the Federal Reserve, Jerome Powell, has blamed Donald Trump’s tariffs for preventing the immediate interest rate cuts the president has demanded. Trump has repeatedly urged Powell to reduce borrowing costs in the US economy. On Tuesday, he said: “Anybody would be better than J Powell. He’s costing us a fortune because he keeps the rate way up.”

He spoke not long after Powell told a European Central Bank (ECB) event in Portugal that the Fed was waiting to assess the inflationary impact of the president’s trade policies.

Speaking on a panel of central bankers in Sintra, the Fed chair said: “In effect we went on hold when we saw the size of the tariffs. Essentially all inflation forecasts for the United States went up materially as a consequence of the tariffs. We didn’t overreact, in fact we didn’t react at all. We’re simply taking some time.”

Asked if the Fed would have cut its key Fed funds rate further, from the current target range of 4.25-4.5%, if it wasn’t for tariffs, Powell said: “I think that’s right.”

Read more: https://www.theguardian.com/us-news/2025/jul/01/federal-reserve-chair-blames-trump-tariffs-for-preventing-interest-rates-cut

[pfitz59]

1. Will Powell be the first 'citizen' to be deported?

Oranganius Rex is not happy.

[Irish_Dem]

2. This is why Trump has to blame everyone else.

All roads lead back to Trump in terms of serious problems.

[Miguelito Loveless]

3. This will anger

The Orange Regime. They will move against him since disobedience cannot be tolerated.

[Bernardo de La Paz]

4. Note how wannabe king tRump acts as if Powell is king of the Fed whereas it is a committee that votes. . . . nt

[Buddyzbuddy]

5. Which is the reason as soon as the Felon implemented his outrageous tariffs

he started the campaign to oust Powell. He wanted Powell to reduce rates to offset the tariffs before the impact of his decision would come to light. And if Powell didn't lower rates then the Felon could say the resulting bad economy is Powell's fault, not the inflated tariffs.