Jerome Powell Sticks To Position Against President

July 1, 2025 2:53 pm

WASHINGTON (AP) — Federal Reserve Chair Jerome Powell is sticking to his position that the central bank will keep its key rate on hold while it waits to see how President Donald Trump’s tariffs effect the economy, defying the steady stream of criticism from the White House, which wants lower borrowing costs. Powell repeated his view Tuesday that U.S. inflation is likely to pick up later this summer, though he acknowledged that the timing and magnitude of any price increase from the duties is uncertain. But he said the Fed will stay on hold while it evaluates how the economy evolves. Powell’s comments underscored the divide between the U.S. central bank’s leader and the Trump administration. Trump has repeatedly urged the Fed to cut its key rate, which he says would save U.S. taxpayers billions of dollars on interest costs on the federal government’s massive debt, and boost the economy.