Why the Fed does not reduce the rate by the Republican members of the House Financial Services Committee, as President Donald Trump has demanded, Powell said he and many people expect inflation to rise soon, and there was no rush to facilitate the borrowing costs in the meantime.
Powell, in particular, said that he would not open the door to the Fed’s July meeting, as his two colleagues were recently indicated, or in another session.
“I do not want to point to any special meeting. I do not think we need to be in a rush,” said Powell, “Still gave many uncertainty about the impact of the strong labor market and still unhealthy tariff discussion, Powell said.
Referring to the expected tariff-based price hike, Powell said, “We should start watching this during the summer, number and July in the number … If we are not fully open to the idea that the pass-throw (customers) will be less than what they think, and if we will be important to that policy.”
“I think if it turns out that inflation is contained under pressure, we will reach a place where we cut the rate sooner than.”
Waiting for a large number of Trump administration’s tariff negotiations, the central bank was often quoted as to why Powell repeatedly drowned with that issue and was not reducing inflation.
Powell said that the purpose of the Fed policy is not to support or criticize the approach to the Trump administration’s business, only to face inflation’s influence or predict the forecast of the Fed and the forecast to collect momentum in the rest of the year.
“We are not commenting on tariffs,” Powell said. “Our job controls inflation, and when policies have short and medium -term, meaningful, effects, inflation becomes our job.”
“All the professional predictions I know … expects the meaningful addition of inflation during this year,” Powell said, “Expanded the unwanted fad rates, while the main aspects of Trump’s trade policy remain unresolved.”
Pering bats
In the prepared testimony of the house panel, Powell noted that the effects could be “short -term, which reflects a one -time shift at the price level. It is also possible that the inflation may be more consistent rather than the inflation … for that time, we are in a better way to know the potential way of the economy before considering any arrangement in our policy stains.”
After the release of Powell’s testimony, investors staged that with the July meeting of the Central Bank Central Bank, its policy could reduce interest rates, and increase the alleged barrier to decline in September, followed by another year.
Powell’s testimony, as generally as its half -year -old Congress, often tracks the recent policy statements of the Central Bank, which is approved last week. Fed officials in that meeting current 25.95%%. The benchmark was unanimously voted to keep the benchmark interest rate stable in the %% range, and no signal cut was cut.
The new economic estimates released at that time were expected to reduce the two quarter-point rate by the end of the year, corresponding to the current market prices.
In recent days, two Fed governors, both Trump appointments have stated that the July meeting could decrease immediately, inflation in response to tariffs has not yet increased, while the three reserve bank presidents said they still worry that inflation would be more intense in the rest of the year.
Trump, who appointed Powell as the chairman in his first tenure, but when his term is expected to change next spring.
“We should be at least two to three points less,” he said in a social media post before the hearing, adding that he added in the context of Powell that he hoped that “Congress really works this very dumb, hardhead person.”
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