Federal Reserve Chair Jerome Powell defended the central bank’s decision to hold interest rates steady amid intense pressure from President Trump and Senate Republicans. Speaking before the Senate Banking Committee, Powell stressed the Fed’s cautious approach, citing economic uncertainty from Trump’s tariff policies.
“If we make a mistake here, people will pay the cost for a long time,” Powell said, rejecting demands for immediate rate cuts.
The Fed’s pause, amid a strong economy, frustrated Trump, who labeled Powell “a very stupid person” and accused him of political bias. Commerce Secretary Howard Lutnick echoed those attacks, saying Powell ignores tariff revenues.
Sen. Bernie Moreno (R-Ohio) accused Powell of intentionally keeping rates high to undermine Trump’s agenda. But Powell emphasized the Fed’s independence and the risks of inflation.
The FOMC voted unanimously to hold rates at 4.25–4.5%, but most members still expect cuts later this year.
Trump, whose tariffs have added economic uncertainty, said he’s already vetting Powell’s replacement before his February term expiration.
Source
Discover more from News Facts Network
Subscribe to get the latest posts sent to your email.
