The president of the Federal Reserve, Jerome Powell, said Friday that he hopes that the tariff policy of President Donald Trump rises prices and slows economic growth, while noting that the key indicators “still show a solid economy.”
Changes in the policies implemented by the White House have contributed to a “highly uncertain perspective,” Powell said, making comments as the actions collapsed in the midst of an increased global commercial war.
Despite the murky perspective, Powell said Trump’s tariffs would probably increase consumer prices.
“While it is very likely that tariffs generate at least one temporary increase in inflation, it is also possible that the effects are more persistent,” Powell told the audience in society to advance in the business editing and writing conference in Washington, DC
Minutes before Powell spoke, Trump abruptly criticized the president of the Fed, asking him to reduce interest rates.
The president of the Federal Reserve, Jerome Powell, speaks during a press conference after the meeting of the Federal Open Market Committee, March 19, 2025, in the Federal Reserve in Washington.
Kevin Dietsch/Getty Images
“This would be a perfect time for Fed President Jerome Powell, to reduce interest rates,” Trump said in a publication about Truth Social.
Trump also said without evidence that political considerations have played a role in Powell decision making in the interest rate policy.
On Friday, Powell refused to respond directly to Trump. Even so, Powell strongly rebuked any concern for his political independence.
“I do not respond to political comments,” Powell said, added that it would be inappropriate for the Central Bank to comment on the commercial policy of the United States.
“We try to stay as far as possible from the political process,” Powell said. “That is what people expect from us.”
This is a development story. Consult the updates again.
