Interest Rate Policy and Tariffs🗞️🗞️
: Powell has defended the Fed’s decision to hold interest rates steady, citing uncertainty from Trump’s proposed tariffs, which could increase inflation. In a June 2025 Senate testimony, Powell noted that the Fed paused rate cuts to assess the impact of tariffs, which include a 30% levy on Mexico and the EU, a 35% tariff on Canadian goods, and a 145% tariff on Chinese goods. Powell suggested rates might be cut later in 2025, but no immediate changes were signaled in his recent remarks.
