In a press conference held by Federal Reserve Chairman **Jerome Powell** on **May 7, 2025**, he clarified that the central bank decided to **keep the key interest rate unchanged** in the range of **4.25% to 4.5%**, pointing to rising **economic risks**, especially concerning inflation and unemployment, as a result of the tariffs imposed by the **Trump** administration.
**Key Points Addressed by Powell:**
1. **Inflation and Unemployment Risks:** He mentioned that inflation and unemployment have become prominent current economic challenges, although the data does not indicate significant changes as of yet. He confirmed that the central bank is closely monitoring these developments to make appropriate decisions when necessary.
2. **Tariff Effects:** He indicated that the tariffs imposed on certain imports, especially from **China**, could lead to **rising prices** and a slowdown in **economic growth**, increasing **uncertainty** about the economic future.
3. **Monetary Policy:** He clarified that the Federal Reserve prefers **to wait and monitor economic developments** before making any decisions regarding interest rates, stressing that the bank **does not see an urgent need to change monetary policy at this time**.
4. **Central Bank Independence:** He emphasized that economic decisions are based on accurate analyses and reliable data, not on **political pressures**, referencing the repeated calls from **President Trump** to lower interest rates.
5. **Future Outlook:** Despite some signs of **slowing growth**, Powell emphasized that the **economy still exhibits relative strength** with low unemployment rates and stable consumer spending, but he noted that the bank will remain **vigilant for any changes that may impact economic stability**.