Fed Chair Jerome Powell rebuffs Trumps push to cut rates, warns tariffs will likely push inflation higher

Federal Reserve Chair Jerome Powell on Friday rebuffed President Trump’s call for the central bank to immediately cut interest rates — warning that that administration’s sweeping new tariffs are likely to push inflation higher and slow economic growth.Powell acknowledged the strength of the current US economy but emphasized that the Fed is navigating a “highly uncertain outlook” following Trump’s announcement on Wednesday of 10% tariffs on all imports, alongside even steeper reciprocal measures for key trading partners.“Our obligation is to keep longer-term inflation expectations well anchored and to make certain that a one-time increase in the price level does not become an ongoing inflation problem,” Powell told a room of business journalists in Arlington, Va., on Friday.“We are well positioned to wait for greater clarity before considering any adjustments to our policy stance.It is too soon to say what will be the appropriate path for monetary policy.”His remarks follow a sharp escalation of tensions between the Fed and the White House.Moments before Powell took the podium, Trump urged the Fed boss to “stop playing politics” and slash interest rates in light of recent economic data showing a decline in inflation.“This would be a perfect time for Fed Chairman Jerome Powell to cut Interest Rates.

He is always ‘late,’ but he could now change his image, and quickly,” Trump wrote on his social media site Truth Social.“Energy prices are down, Interest Rates are down, Inflation is down, even Eggs are down 69%, and Jobs are UP, all within two months — A BIG WIN for America.CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS!”The Fed kept interest rates unchanged — between 4.25% and 4.50% — at its meeting last month and the central bankers are not scheduled to meet again until early May.Wall Street has crated since Trump announced his “Liberation Day” tariffs.Investors are growing increasingly concerned about the economic ...