Fed Chair Powell Says Fed Would Have Cut Rates in 2025 If Not for Trump’s Tariff Policy

Federal Reserve Chair Jerome Powell said Tuesday the central bank would likely have eased interest rates this year if not for Trump’s tariff policy, according to CNBC. Speaking at a European Central Bank forum in Portugal, Powell confirmed that the Fed likely would have cut rates this year if Trump had not announced plans for higher import tariffs. Powell said the Fed paused rate cuts after assessing the scale of Trump’s tariffs, which caused U.S. inflation forecasts to rise significantly. His remarks come as the central bank maintains a steady interest rate policy amid pressure from the White House. The Fed kept its key interest rate unchanged last month, maintaining the 4.25% to 4.5% range set in December. Trump has recently escalated criticism of Powell, calling him “terrible.” Powell declined to say whether he would remain at the Fed after his term as chair ends in 2026.