Powell says Fed won’t be rushed, outlook depends on White House

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According to Bloomberg, the Federal Reserve Chair Jerome Powell made it clear that unless there is much confidence in the direction of trade policy, they do not have much to come from the White House.

Paul and his colleagues kept interest rates stable on Wednesday, and in his first meeting after President Donald Trump’s clear tariff announcements last month, he said the risk of inflation and unemployment was increased.

Paul said the scenario would force a tough choice, to reduce loan costs to help the job market or to overcome prices pressure. And in the meantime, he suggested uncertainty on revenue and scale – and the results of ending trade talks – will maintain policy makers right now.

Referring to the Federal Open Market Committee, BNP Pribas’s chief US economist James Eaglov said, “The decisive turning point in US economic data is absent, the FOMC seems comfortable to remain indefinitely.” “The FOMC is looking forward to the belief that the next move is deducted on the basis of the economy, which is leading to a recession or is a step towards a more restriction policy due to excess inflation.”

The rate panel unanimously voted to keep the benchmark federal funds rate from 4.25 percent to 4.5 percent, where it has been since December. Trump announced a series of more expected revenue than expected on April 2, but then stopped some of them for 90 days. Levies are now 145 % on imports from China. The nature of the revenue is once again paired by the lack of explanation that where the trade policy will eventually be finalized, the entire economy has eliminated the wave of uncertainty.

Although the levies are still being discussed, economic experts expect widespread weighing on prices and growth. Powell is eliminating strong criticism for not reducing the rates. With reporters behind, the feed chair emphasized that the White House is in a better position to solve the growing risks and uncertainty, and is actually moving in that direction. US and Chinese officials will meet this weekend to discuss prices in Switzerland.

“Finally, it is for the administration. It is their mandate, not ours,” Paul said. “It seems that we are entering a new phase where the administration interacts with many of our major trading partners and has the ability to replace the image materially.”

In the United States, recession concerns have increased, and some businesses have reported to stop investment decisions in view of uncertainty. Nevertheless, the labor market is flexible, employers increased by 177,000 jobs in April. According to the statement, Fed officials have described the situation in the labor market as “solid”. Recognizing that consumers and business sentiment have become dark between tariff announcements.

Reacting feed

“Generally, when we see the feed, they have very little about the ‘Masters of the Universe’,” said Claudia Saham, chief economist of New Century Advisors. “Fed White House policies are very high on the sound of the voice. They react.”

Economists say that working through the economy will take full effect on new taxes. So far, its effects mainly include a rapid decline in emotion and increase in imports. The US economy signed a contract at the beginning of the year for the first time since 2022, but a basic demand gauge remained.

Future Markets show that investors still expect a shortage of three interests this year, with the difficulties of cutting up to about 85 85 % in early July. Most economists and investors do not expect the feed will reduce lower rates at its next meeting in June.

“You’re not taking data until June, which really provides you with enough information,” said Alan Made, a research professor at the University of Duke University. “Initially you might be really thinking about July, but clearly I think it’s September, and I’m not sure they are going to bite.”