US Fed chair to signal no rush for rate cuts despite Trump pressure

TDT | Washington

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US Federal Reserve Chair Jerome Powell will tell Congress yesterday that the central bank can afford to wait for the impact of tariffs before deciding on further interest rate cuts -- despite President Donald Trump’s calls to do so.

The Fed has a duty to prevent a one-time spike in prices from becoming an “ongoing inflation problem,” Powell said in prepared remarks to the House Committee on Financial Services.

“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,” he added.

Powell’s reiteration that the Fed can wait to lower rates comes after two Fed officials recently expressed openness to cuts as early as in July. The Fed has held the benchmark lending rate steady this year after its last cut in December, bringing the level to a range between 4.25% and 4.50%.