Powell Signals Potential Rate Cuts Amid Tariff Tensions and Political Pressure
Jay Powell indicated that a July interest rate cut by the US Federal Reserve is possible depending on economic data, signaling a potential softening of his previous stance that cuts should wait until autumn. Despite Powell's comments, market expectations for an immediate cut remained subdued, influenced by strong economic data and pressure from President Trump. Powell emphasized the importance of data-driven decisions and highlighted the impact of tariffs on inflation forecasts.