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Powell: Rate Cut Pressure Doesn’t Affect Our Duty, No Rush in Policy Shift

Jerome Powell speaks after the latest Fed meeting

Federal Reserve Chair Jerome Powell delivered strong statements during the post-meeting press conference, sending ripples through both political and financial circles. Responding firmly to speculation about President Donald Trump, Powell stated: “I never wanted a meeting with Trump, and I never will. The President has not requested a meeting with me.”

With this remark, Powell reaffirmed that political pressure has no influence on the Fed’s monetary policy. He also emphasized that “the President’s calls for rate cuts do not affect our job in any way.”

Inflation Uncertainty and Tariff Impact

Another critical focus of the meeting was inflation and the impact of tariffs. Powell said, “The core inflation picture looks good, but we can’t say how long it will last.” He added that there is significant uncertainty around tariffs and their longer-term implications.


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“We haven’t yet seen major economic effects from tariff data,” Powell said, while warning that if the sharp increases in tariffs continue, “we could see higher inflation and lower employment.”

He also noted, “According to survey participants, inflation expectations are now being shaped by tariffs. So far, tariffs have been significantly larger than expected.”

Rate Cut Signals Without a Timeline

Although Powell left the door open for future rate cuts, he refrained from committing to any specific timeline. Regarding market expectations of two cuts in March, he responded, “We can’t make that prediction right now; we need to wait until June.”

One of Powell’s key remarks was:

“There are conditions this year where rate cuts could be appropriate.” He added, “When things evolve and it’s appropriate, we can move quickly. But now is the time to wait before changing policy.”

These statements suggest that the Federal Reserve is not rushing into decisions but remains prepared to act swiftly if economic data requires it.


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