The head of the U.S. Federal Reserve, Jerome Powell, confirmed the central bank's intention to "wait to learn more" about the impact of tariffs on inflation before lowering interest rates, thereby ignoring President Trump's demands for an immediate and significant rate cut
He added: "As long as the U.S. economy is in good shape, we believe it is wise to wait to learn more about these effects"
Powell's remarks came at a meeting of central banks in Portugal, a day after Trump sent him a handwritten letter, in which he referred to how low interest rates are around the world
