US EditionPowell defends Fed’s ‘careful’ approach amid Trump insults, GOP pressure
- Federal Reserve Chair Jerome Powell spoke before the Senate Banking Committee on Wednesday, warning tariffs will likely cause inflation starting this summer.
- Powell highlighted the Federal Reserve’s independence, acknowledged the uncertainty caused by Trump’s tariff policies, and declined to respond to intense calls for tapping the brakes with immediate interest rate reductions.
- Research on the impact of tariffs on inflation presents varied findings: some studies suggest retailers absorbed much of the cost, while others estimate that the tariffs contributed to an increase in core PCE inflation by around three to four-tenths of a percentage point each year.
- Powell explained that if the tariff-related price increase occurs rapidly and settles promptly, it is probably a single event, but he emphasized the central bank remains cautious due to the possibility of more enduring inflationary effects.
- The Fed held rates steady at 4.25-4.5% and plans cautious monitoring before cutting rates, given tariff uncertainties and a July 9 deadline for higher levies.
65 Articles
65 Articles
Roanoke Times
Fed's Powell repeats his warnings about tariffs
WASHINGTON — Federal Reserve Chair Jerome Powell said Wednesday that President Donald Trump's sweeping tariffs will likely push up inflation in the coming months, even as some Republican senators suggested the chair was biased against the duties.
News Facts Network - Fed Chair Powell Defends Rate Policy as Trump, GOP Ramp Up Attacks
Federal Reserve Chair Jerome Powell defended the central bank’s decision to hold interest rates steady amid intense pressure from President Trump and Senate Republicans. Speaking before the Senate Banking Committee, Powell stressed the Fed’s cautious approach, citing economic uncertainty from Trump’s tariff policies. “If we make a mistake here, people will pay the cost for…
Powell Says Fed Needs to Manage against Risk That Tariff Inflation Proves Persistent
WASHINGTON, June 25 (Reuters) – The Trump administration’s tariff plans may well just cause a one-time jump in prices, but the risk it could cause more persistent inflation is large enough for the central bank to be careful in considering further rate cuts, Federal Reserve Chair Jerome Powell told a U.S. Senate panel on Wednesday.
Senator Pete Ricketts argued that tariffs could simply act as a more gradual increase in prices, while Senator Bernie Moreno accused Powell of political participation.
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- 69% of the sources are Center
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