Fed Chair Jerome Powell has continued to advocate for the Fed to maintain a “wait-and-see” approach in regard to the federal funds rate, despite constant pressure from President Trump. Trump has even nicknamed Powell “Too Late” Powell in reference to the Fed delaying interest rate cuts.
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“For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance,” said Powell in prepared remarks on Tuesday.
July Rate Cut Odds Drop Following Powell Comments
Powell added that government policies continue to change and that interest rates will be influenced by the actual effects of tariffs, which are still unclear. His opinion differs from Fed Governor Christopher Waller and Fed Governor Michelle Bowman, who both said that the Fed is in a position to cut by July if inflation remains under control.
Following Powell’s comments, the odds of a July rate cut fell to 16.5% from 20.7% yesterday, based on CME’s FedWatch tool.
Track the federal funds rate and other key economic metrics with TipRank’s Economic Indicators Dashboard.
