Federal Reserve Chairman Jerome Powell
Federal Reserve Chairman Jerome Powell said he is satisfied with the current stance of the US central bank’s monetary policy, noting that inflation has fallen close to its target level. 
“The US economy is in a pretty good position,” Powell said in his speech during the European Central Bank (ECB) Forum today, July 1, in Sintra, Portugal.
He explained that US inflation has fallen to near the 2% target level, adding, “If we ignore tariffs, inflation behaving as expected and hoped … We expect higher readings over summer.”
When asked during a panel if the Fed would have cut interest rates again this year had not Trump no announced his hardline tariff policy, Powell nodded and said, “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.”
“We are taking time, for as long as the US economy is solid, the prudent thing is to wait. Solid majority of FOMC participants deem appropriate to cut rates again later this year,” he pointed out.
Powell was also asked if July would be too soon for markets to expect a rate cut. He answered that that he “really cannot say” and that “it is going to depend on the data.”
Federal Reserve Chairman Jerome Powell
Federal Reserve Chairman Jerome Powell said he is satisfied with the current stance of the US central bank’s monetary policy, noting that inflation has fallen close to its target level.
“The US economy is in a pretty good position,” Powell said in his speech during the European Central Bank (ECB) Forum today, July 1, in Sintra, Portugal.
He explained that US inflation has fallen to near the 2% target level, adding, “If we ignore tariffs, inflation behaving as expected and hoped … We expect higher readings over summer.”
When asked during a panel if the Fed would have cut interest rates again this year had not Trump no announced his hardline tariff policy, Powell nodded and said, “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.”
“We are taking time, for as long as the US economy is solid, the prudent thing is to wait. Solid majority of FOMC participants deem appropriate to cut rates again later this year,” he pointed out.
Powell was also asked if July would be too soon for markets to expect a rate cut. He answered that that he “really cannot say” and that “it is going to depend on the data.”
