“With a policy in a restrictive area, basic forecasts and changing risks balance can justify the adaptation of our policy” – said Powell during the economic peak of the Federal Reserve in Kansas City, Jackson Hole, Wyoming.
His statement suggests that he can support the reduction of the feet by a quarter percentage point at the September Fed meeting.
Trump versus Powell
As the Financial Times writes, President Trump and his supporters began an intensive campaign against Powell and other high -ranking Fed officials, demanding a drastic reduction in interest rates.
Until now, the Fed has maintained the main interest rate in the 4.25-4.5 percent range. This year, after discounts by 1 percentage point in 2024, because some members are afraid that Trump's duties on US trading partners can cause a new wave of inflation.
Although Powell admitted that the effects of the administration trade war on consumer prices are now “clearly visible”, he noted that they probably would not be permanent and constitute a one -time shock that the central bank can ignore.
