Powell Shuns Trump, Says Fed Rate Cut Is On Hold

Federal Reserve Chairman Jerome Powell said this week that the central bank will continue to wait and assess how the economy evolves before deciding whether to cut its key interest rate—a position that stands in direct contrast to President Donald Trump’s demands for immediate rate reductions, Chris Rugaber reported for the Associated Press (AP).

Powell has often pointed to his bipartisan backing in Congress as a buffer against President Trump’s repeated attacks.

“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,” Powell told the House Financial Services Committee during his testimony.

Several Republican lawmakers urged Powell to lower borrowing costs sooner, possibly at the Fed’s next policy meeting at the end of July.

Nonetheless, the hearing remained generally civil, and Powell did not face harsh criticism for the Fed’s decision to hold rates steady.

Lawmakers from both parties praised Powell for staying focused on the Federal Reserve’s dual mandate: maintaining price stability and supporting maximum employment.

Powell has often pointed to his bipartisan backing in Congress as a buffer against President Trump’s repeated attacks.

In response, Trump lashed out once again, posting on his social media platform: “I hope Congress really works this very dumb, hardheaded person over. We will be paying for his incompetence for many years to come.”