Powell reiterates Fed will wait to learn more on tariffs before cut

Published 01/07/2025, 14:56
Powell reiterates Fed will wait to learn more on tariffs before cut

Investing.com -- Federal Reserve Chair Jerome Powell said the U.S. central bank plans to "wait and learn more" about the impact of tariffs on inflation before lowering interest rates.

Speaking at a central bank gathering in Portugal, Powell emphasized a cautious approach to monetary policy. "We’re simply taking some time," Powell said. "As long as the U.S. economy is in solid shape, we think that the prudent thing to do is to wait and learn more and see what those effects might be."

Powell’s comments came a day after President Donald Trump sent him a handwritten note pointing out how other central banks had cut rates to lower levels and suggesting the U.S. needed to follow suit.

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