Fed mouthpiece: Fed in no rush to cut rates in response to Trump's tariffs

Odaily Planet Daily reported that "Federal Reserve mouthpiece" Nick Timiraos analyzed and pointed out that Federal Reserve Chairman Powell downplayed expectations of alleviating the economic weakness that may be caused by Trump's tariffs through interest rate cuts. Powell frequently used the word "wait" at his press conference, emphasizing that the Fed is not in a hurry to take action. Timiraos believes that Trump's trade policies have led to a divergence in monetary policy between the United States and other economies. Other economies have not significantly raised import tariffs and are facing problems with weak demand and employment, without the rising price pressures that the United States may face. In addition, given that the United States has just experienced high inflation, the Fed is reluctant to risk preemptively cutting interest rates to support slowing employment, fearing that it would exacerbate inflation in the short term. The Fed's stance is therefore different from that of the European, Canadian and British central banks. Powell suggested the Fed would consider cutting interest rates only if it saw evidence of a significant slowdown in economic growth, and possibly a quick cut. (Golden Ten)