Powell dismisses July rate cut, heightening tension with Fed board and Trump

Powell dismisses July rate cut, heightening tension with Fed board and Trump


Federal Reserve Chairman Jerome Powell indicated Tuesday that the central bank will not cut its interest rate target in July, a stance that puts him in conflict with members of the Fed’s board of governors, as well as with President Donald Trump. 

Powell said in prepared remarks for testimony before Congress that the threat of higher inflation from Trump’s tariffs made it necessary to hold rates steady for the time being. 

“For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance,” the remarks read. 

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Powell acknowledged the argument advanced by some economists that the upward pressure on prices from tariffs could prove short-lived, and thus should not lead

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