Federal Reserve chair Jerome Powell said earlier this morning that the central bank would likely have already cut interest rates this year had it not been for the economic shock caused by Donald Trump’s tariff policies.
When asked if Trump’s tariffs on imported goods held up the Fed’s plan to cut interest rates, Powell replied:I think that’s right.
Speaking at a central banking conference in Portugal, he went on:
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.
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