Tactical Pause vs. Political Push!

In Congress, Powell defended the Fed’s independence, stating it’s not the institution’s role to lower rates based on political demands but to focus on price stability and full employment. He warned that tariffs may still raise inflation, delaying any rate cut beyond July

Meanwhile, Trump’s criticism intensified, accusing Powell of hiking U.S. government debt costs. Despite this, internal Fed voices are gradually aligning with early easing—posing an unusual division in the Fed group—yet overall consensus emphasizes caution through the year

The narrative is clear—Powell leads a cautious institutional path, while political leadership demands acceleration. The upcoming summer data, especially tariff-inflation effects, will be decisive for the next policy move.