Powell: Tariffs Delay Rate Cuts, Congress Acts

Federal Reserve Chair Jerome Powell said the Fed would likely have eased monetary policy by now if not for President Trump's tariff plans, which raised U.S. inflation forecasts and led the central bank to hold rates steady. While Powell maintains that the U.S. economy remains strong, he acknowledged that some Federal Open Market Committee members see conditions as suitable for a rate cut. Market experts, including Robert Citrone, remain skeptical that any rate cuts will occur this year due to tariff-related uncertainty and ongoing inflation. The Fed's approach is increasingly influenced by upcoming economic data such as employment reports and jobless claims. Analysts debate whether the Fed's policy can meaningfully affect credit and inflation amid powerful external and market forces. Meanwhile, Congress is moving forward with trade legislation, signaling further potential shifts in the economic outlook.