Powell will pay attention to the possible consequences of Trump's customs policy. He said that “tariff growth this year would probably increase prices and affect economic activity.” However, it is expected that the effects of tariffs imposed by the president's administration will not be as dramatic as expected a few months ago – writes the British daily “Financial Times”.
Not all members of the FED board share Powell's position. Chris Waller and Michelle Bowman in recent days have expressed the belief that interest rates should be reduced during the next vote in July. They argue that recent inflation data suggest limited duties on the overall price level.
Powell, which takes the position of the FED chairman until May 2026, has a different approach. In prepared comments, he will indicate that “the inflationary influence of the US president's policy may be short -lived.” At the same time, he will point out that there is a risk of more long -term effects of this policy.
Trump presses on Powell: “lower your feet by 3 percentage points”
President Donald Trump repeatedly criticized Powell and decisions taken by the Federal Open Market Committee (FOMC). Trump expects a radical cost of loan costs, up to three percentage pointsand described Powell as a “dull”. Last year, the Fed decided to reduce interest rates by one percentage point, but most FOMC representatives prefer the use of the “Wait and see” strategy before the next steps are taken in monetary policy.
Powell has repeatedly emphasized that FED decisions reflect long -term economic goals, not short -term expectations. He noted that the exact effects of the trade war still remain difficult to estimate, which makes you care in the case of subsequent activities affecting the condition of the US economy.
