US Federal Reserve Chair Jerome Powell signaled Tuesday that the central bank would take a wait-and-see approach to lowering interest rates, amid calls for a July rate cut and growing pressure from US President Donald Trump.
Testifying before lawmakers, Powell suggested earlier cuts were possible if inflation were to ease, or if labor data weakens, but cited continued forecasts of higher inflation and high uncertainty over tariffs’ impact as reasons to wait: “Many paths are possible,” he said.
Trump has repeatedly criticized Powell for not cutting rates, a public barrage that has “little modern precedent,” The Wall Street Journal’s chief economics correspondent noted; two Trump-appointed Fed board members have recently said they would support a July rate cut.