Chairman of Fed Powell said he would not rule out this month’s interest rate cutting
Chairman of Federal Reserve Jerome Powell said on Tuesday that he would not rule out the potential for slaughtering interest rates as fast as this month. The statement came in the middle of a public pressure campaign from President Donald Trump, who had repeatedly urged Powell to cut interest rates.
When asked on Tuesday about the possibility of slaughtering interest rates at the Fed meeting this month, Powell said, “I will not take any meeting from the table or put it on the table. It depends on how the data develops.”
Speaking in the panel at the European Central Bank forum in Sinatra, Portugal, Powell turned questions from the moderator about the challenges caused by Trump’s prickly criticism.
“I am very focused on just doing my job,” said Powell, drawing applause. The central bank permanent “100% focus” on the double mandate controls inflation and provides maximum work, added Powell.
The moderator then asked European Central Bank President Christine Lagarde if he would do something different if he was in Powell’s position.
“I spoke myself but I spoke for all my colleagues in this panel, who will do the exact same thing as Jay Powell,” Lagarde said. “The exact thing is the same.”
Since Trump served, he has criticized Powell on many occasions, although there are long norms of political independence in the central bank. The Fed is an independent government agent founded by the congress.
In a social media post on Monday, Trump said Powell and other central bankers “must be ashamed of themselves.”
“We have to pay 1%interest, or better!” Trump said, calling for sharp reductions in interest rates from the current level between 4.25% and 4.5%.
Social media posts include a clear handwriting letter to Powell, who has Trump’s signature.
Chairman of Federal Reserve Jerome Powell testified during the Banking Session of the Senate, Housing and City Affairs Committee entitled “Half -Year Monetary Policy Report to Congress,” at Dirksen Building, June 25, 2025.
Tom Williams/AP
The Fed holds a benchmark interest rate stable last month, continuing the waiting-and-see-see approach adopted by the central bank in recent months because of observing the potential effects of Trump’s tariff policy. Four meetings and six months have passed since the Fed was last adjusted to interest rates.
The Fed last month estimated that two quarter -point interest rates for the remaining 2025, brought predictions issued in March.
On Tuesday, Powell stressed that the majority of Fed Policy Board members supported the additional interest of this year. The central bank will hold four tariff determination meetings for the remaining 2025-and first will occur on 29 and 30 July.
“The majority of us feel that it will be right in the four remaining arrangements this year to start reducing interest rates again,” Powell said.
