Powell: Tariffs bring uncertainty, leading to a delay in interest rate cuts

ChainCatcher news, according to Jinshi reports, at an ECB event held in Portugal, Federal Reserve Chairman Powell stated that if it weren't for President Trump's tariff policy, the Fed would have started cutting interest rates by 2025, and would currently be adopting a more accommodative monetary policy.

When asked whether the uncertainty caused by the current U.S. government's tariff system has led the Fed to delay interest rate cuts, Powell answered affirmatively, adding that due to the impact of tariffs, nearly all predictions for U.S. inflation rates have risen significantly.

Powell acknowledged that despite increasing pressure from the U.S. government, the Fed is still in a mode of maintaining interest rates. He also stated that given the current instability of the economic outlook, the Fed is still monitoring the situation to gather more information.