The U.S. central bank would likely have begun cutting interest rates again if not for the plan to enact higher levies on imports, the Fed chief said.

Federal Reserve Chair Jerome Powell said Tuesday that the U.S. central bank would have eased monetary policy by now if not for Donald Trump’s tariff plan.

When asked during a panel if the Fed would have lowered rates again this year had Trump not announced his controversial plan to impose higher levies on imported goods earlier this year, Powell said, “I think that’s right.”

“In effect, we went on hold when we saw the size of the tariffs and essentially all inflation forecasts for the United States went up materially as a consequence of the tariffs,” Powell said at European Central Bank forum in Sintra, Portugal.

  • shalafi@lemmy.worldEnglish
    3·
    15 days ago

    Anyone else would have long been fired by Trump for speaking against his agenda. Powell is fairly bulletproof as Trump’s advisors are likely holding him back by explaining, as in ELI5 explaining, that firing Powell would shock financial markets and Trump would get the blame.

    I SO love Trump’s tweets seething over this motherfucker.

    • Drusas@fedia.io
      2·
      15 days ago

      Not that it would stop him, but he does not have the authority to fire him.