07.05.2025 22:50
Federal Reserve Chairman Jerome Powell, after the decision to keep interest rates unchanged, stated that the tariff increases announced by the Trump administration could raise inflation, slow economic growth, and increase unemployment. Responding to Trump's call for interest rate cuts, Powell said, "We are trying to fulfill our duty and assess the risks."
The Federal Reserve (Fed) kept the policy interest rate stable in the range of 4.25-4.50 percent, in line with expectations.
"THE ECONOMIC OUTLOOK MAINTAINS CAUTIOUS OPTIMISM" Fed Chairman Jerome Powell made evaluations regarding the economy and monetary policy at a press conference following the announcement of the decision. Powell stated that although inflation is on a downward trend, it is still above the 2 percent target. He expressed that the labor market is generally balanced and that the economic outlook maintains cautious optimism.
Fed Chairman Jerome Powell "TARIFF INCREASES WILL LEAD TO RISE IN INFLATION, SLOWDOWN IN ECONOMIC GROWTH, AND INCREASE IN UNEMPLOYMENT" Pointing out the uncertainties regarding trade policies, Powell emphasized that if the announced significant tariff increases continue, the economic effects could be serious. Powell stated, "If the announced significant tariff increases are sustained, it is likely to lead to an increase in inflation, a slowdown in economic growth, and an increase in unemployment." The Fed Chairman also noted that therefore, cautious behavior is necessary in policy steps.
"WE DO NOT WANT TO TAKE ACTION UNTIL TARIFFS BECOME A BIT CLEARER" Powell noted that the Fed's decision-making processes are shaped in light of current global risks, stating, "It is currently uncertain where the tariff issue will evolve and what its effects on inflation and unemployment will be. We do not want to take action until tariffs become a bit clearer," he said.
RESPONSE TO TRUMP'S INTEREST RATE CALL In response to a question about U.S. President Donald Trump's calls for interest rate cuts, he replied, "Trump's statements do not affect the way we do business. We are trying to fulfill our duty and assess the risks."