First, he said he was not in a hurry to cut rates because the tariffs were not live yet. If he reduced interest rates and then inflation increased due to tariffs, it would create problems.
Second, he mentioned that the labor market was completely solid and stable, so there was no need to cut rates.
Results now:
Tariffs are live from August 1st, and inflation is still stable (not much increase).
Secondly, weโve received very poor labor data.
So, looking at the current data, Powell is in trouble right now he cannot hold off much longer.
