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Powell Defends Rate Strategy Amid Trump's Criticism of Fed ...
2025-06-25 22:55:09
Finance
Economy

Powell Defends Rate Strategy Amid Trump's Criticism of Fed Leadership

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Federal Reserve Chairman Jerome Powell recently addressed Congress, asserting that reducing interest rates is not advisable given the current inflation and economic uncertainties. He acknowledged President Trump's calls for lower rates but emphasized the importance of maintaining price stability to support a robust labor market.

Powell highlighted the Fed's strategy of a 'wait-and-see' approach, citing the economy's resilience and the unpredictable impact of tariffs on inflation. He also clarified that the Fed is not reacting excessively to global geopolitical tensions.

Meanwhile, President Trump hinted at a possible change in Fed leadership, criticizing Powell's performance and suggesting he would soon choose a new chair from a shortlist of candidates.

Related news on that topic:

Powell Reaffirms Cautious Fed Stance Amid Trump's Interest Rate ... Pressure

Jerome Powell, the Chair of the Federal Reserve, has firmly stated that the central bank will not rush to lower interest rates, despite persistent calls for cuts from President Trump. In his testimony before Congress, Powell highlighted the importance of observing the economy's response to rising tariffs before making any adjustments. He emphasized the Fed's cautious approach, pointing out that while the economy is performing well, uncertainties regarding inflation remain. This stance contrasts sharply with the more aggressive monetary policies seen in other regions, like the eurozone. As Powell prepares for further scrutiny in upcoming meetings, the tension between his measured approach and Trump's demands continues to illustrate the complexities of economic governance.

Jerome Powell Advocates Caution on Interest Rates Amid Economic ... Uncertainty

Federal Reserve Chairman Jerome Powell recently addressed Congress, emphasizing the need for caution regarding interest rate adjustments amid rising inflation and economic uncertainties. Despite calls from President Trump for lower rates, Powell underscored the importance of maintaining price stability to support a robust labor market. Fed officials have expressed varying opinions on potential rate cuts, with some suggesting they may be warranted if inflation remains manageable or labor market conditions worsen. Powell also reassured that the Fed is not overreacting to geopolitical tensions, indicating a measured approach to monetary policy. As the market reacts to these developments, including ongoing conflicts in the Middle East, the future of interest rates remains a pivotal topic for economic stability.

Read 4 more recent news on this topic

The press radar on this topic:

nbcnews
24. Juni 2025 um 14:05

Fed chairman Jerome Powell testifies amid ongoing Trump attacks over interest rates

Federal Reserve Chairman Jerome Powell testified before Congress, stating that cutting interest rates would be premature due to rising inflation and uncertainty caused by Trump's trade war and immigration policies. President Trump has repeatedly called for lower interest rates, citing a lack of inflation. Powell acknowledged that forecasters predict an uptick in inflation later this year, but emphasized the need for price stability to maintain strong labor market conditions.
New York Times - Business
25. Juni 2025 um 17:42

Powell Reiterates Fed’s Wait-and-See Approach Before Cutting Rates

Federal Reserve Chair Jerome H. Powell stated that the Fed is taking a 'wait-and-see' approach before cutting interest rates, citing the labor market's solid performance and inflation being 'somewhat elevated'. He noted that the effects of President Trump's tariffs on inflation and economic activity are uncertain and will depend on their ultimate level. Powell emphasized that the Fed can afford to be patient in making policy adjustments.
The Street
28. Juni 2025 um 07:47

Federal Reserve is not 'overreacting' to Iran-Israel conflict, says Powell

Federal Reserve Chair Jerome Powell testified before Congress, reiterating that the Fed is not overreacting to geopolitical tensions by considering interest rate reductions. Powell stated that the economy's strength allows for a 'pause' in rate cuts despite upward inflation trajectory. He expressed support for a stablecoin framework, but declined to take a stance on Wall Street's new stablecoin act.
The Street
29. Juni 2025 um 14:47

Trump teases Fed Chair shake-up, says final pick down to 3 or 4 candidates

President Donald Trump teased a potential shake-up at the Federal Reserve, stating that he will choose from three or four candidates for the next Fed chair. Trump criticized current Fed Chair Jerome Powell as 'average mentally' and 'low IQ', saying he believes Powell will leave his position soon due to incompetence. The president also boasted about the US economy's performance, citing low inflation, strong growth, and increased investment.
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