Fed Chair Jerome Powell reiterated that no rate cuts will happen until the Fed has "confidence that inflation is coming down", emphasizing the unpredictable impact of Trump's tariffs. He noted tariffs will likely drive "meaningful" inflation later this summer, as costs inevitably pass to consumers .
He described the economic outlook as "foggy", saying forecasts are unreliable until more data arrives—especially on tariff effects and global risks like the Middle East tension .
➤ Bottom Line:
Don’t expect rate cuts before September—the Fed is taking a cautious, data-first route and is not bowing to political pressure.
