Powell emphasizes need for data clarity before considering rate cut

From Yahoo Finance: 2025-07-01 09:51:00

Federal Reserve Chair Jerome Powell reiterated the need to “wait and learn” about tariff impacts before lowering interest rates, despite President Trump’s demands. While he didn’t rule out a rate cut in July, he emphasized data-driven decisions, citing rising uncertainty due to trade policies and potential higher tariffs by July 9.

The Fed faces a complex situation with conflicting data on rising unemployment and inflation, crucial for maintaining stable prices and employment. Central bank independence is key to managing inflation. Powell stressed the importance of non-political decision-making for macroeconomic and financial stability, regardless of the political climate or pressure from officials.

The Fed paused rate cuts in December due to increasing inflation forecasts from tariffs. Powell emphasized the need for data clarity before resuming reductions, as inflation remains above the 2% target. While a July rate cut is uncertain, Powell highlighted solid economic growth, a strong labor market, and no urgent need for monetary policy adjustments based on current data.



Read more at Yahoo Finance: Powell reiterates Fed will wait for more data before cutting rates