Defined by Trump, Powell repeats that the Fed can “wait” before lowering its rates

The President of the United States Central Bank (Fed) Jerome Powell once again considers Tuesday that it can “wait” before lowering its rates, despite the opposite opinion of other members and fierce pressures of Donald Trump.

For the moment, we are well placed to wait to know more about the likely evolution of the economy before considering any adjustment of our policybelieves Jerome Powell, according to the text of a speech shared in advance by the monetary institution.

Mr. Powell will be auditioned from 10 a.m. by the banking committee of the House of Representatives. He will do the same before the Senate banking committee on Wednesday.

In a message broadcast on the night of Monday to Tuesday, US President Donald Trump once again attacked him and the monetary policy of the federal reserve, which he deems too restrictive.

Jerome Powell “Too late” Fed will be at the congress today to explain, among other things, why he refuses to lower the rateswrote Mr. Trump on his platform Truth Social.

No inflation, a superb economy. We should be at least two or three points [de pourcentage] lower In terms of guiding rates, said the President of the United States.

Guiding rates of Fed – which guide the loan costs of individuals and businesses – are in a range between 4.25 % and 4.50 % since December.

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Jerome Powell, whose mandate runs until the spring of 2026, had been propelled at the head of the federal reserve by Donald Trump himself during his first mandate.

The American president qualifies him in his last message as beast et stubbornsaying that the United States will pay For his incompetence for many years to come.

He also calls the Council of Governors to act against Mr. Powell. On Friday, he asked other American central bankers to overthrow him.

Customs duties go probably pull the prices upwards

We are aware that our actions affect society, families, businesses across the country. All we do is in the name of our mission which is to reach full employment as much as price stabilityhighlights Jerome Powell in his speech.

The customs duties implemented since the return to power of Donald Trump in January will probably pull the prices upwards and weigh on economic activityhe notes.

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Mr. Powell says he expects the inflation index PCE For the month of May, which will be published on Friday, shows that prices increased by 2.3 % over a year. This would represent an acceleration compared to April (+2.1 %).

The last meeting of the Fedlast week, was unanimously concluded with a status quo concerning guiding rates.

Several officials, who vote on monetary policy, have since shown that they were leaning in favor of a drop at the next meeting in late July.

I don’t think we should wait much moresaid Governor Christopher Waller on Friday.

If the pressures on inflation remain contained By the next meeting of the Federal Reserve, July 29 and 30, I will support a decrease in guiding rates At that time, said Michelle Bowman.

Mr. Waller is considered a potential candidate for the succession of Jerome Powell.

The American president recently propelled Ms. Bowman to her post as vice-president of the Fed Responsible for supervision, with the aim of letting go of the bridle of financial actors.