Federal Reserve Chair Jerome Powell signaled Wednesday that the central bank is not preparing to cut interest rates pre-emptively in response to economic risks from Trump’s tariffs, according to The Wall Street Journal. He emphasized a wait-and-see approach amid lingering inflation concerns. Fed officials are reluctant to cut rates early due to concerns that it could reignite inflation after a recent period of high price increases. The Fed held its benchmark rate steady at around 4.3%, even as the European Central Bank has cut rates seven times in the past year, and the Bank of England is poised to ease further. The policy divergence stems from other economies avoiding tariff-driven price hikes, allowing them to ease rates without the inflation concerns facing the Fed.
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00:00It's Benzinga bringing Wall Street to Main Street.
00:02Federal Reserve Chair Jerome Powell signaled Wednesday that the Central Bank is now preparing
00:06to cut interest rates preemptively in response to economic risks for Trump's tariffs.
00:10And according to the Wall Street Journal, he emphasized a wait and see approach amid
00:14lingering inflation concerns.
00:16Fed officials are reluctant to cut rates early due to concerns that it could reignite inflation
00:21after a recent period of high price increases.
00:24The Fed held the spent truck rate steady at around 4.3 percent, even as the European Central
00:28Bank has cut the rate seven times in the past year, and the Bank of England is poised to
00:33ease further.
00:34Policy diversion stems from other economies, avoiding tariff-driven price hikes, allowing
00:38them to ease rates without the inflation concerns facing the Fed.
00:41For all things money, visit Benzinga.com slash GSTV.