The president of the Fed, Powell, says he hopes that Trump’s rates will increase inflation and slow growth
The president of the Federal Reserve, Jerome Powell, said Friday that he hopes that the tariff policy of President Donald Trump rises prices and slows economic growth, while noting that the key indicators “still show a solid economy.”
Changes in the policies implemented by the White House have contributed to a “highly uncertain perspective,” Powell said, making comments as the actions collapsed in the midst of an increased global commercial war.
Despite the murky perspective, Powell said Trump’s tariffs would probably increase consumer prices.
“While it is very likely that tariffs generate at least one temporary increase in inflation, it is also possible that the effects are more persistent,” Powell told the audience in society to advance in the business editing and writing conference in Washington, DC
Minutes before Powell spoke, Trump abruptly criticized the president of the Fed, asking him to reduce interest rates.
The president of the Federal Reserve, Jerome Powell, speaks during a press conference after the meeting of the Federal Open Market Committee, March 19, 2025, in the Federal Reserve in Washington.
Kevin Dietsch/Getty Images
“This would be a perfect time for Fed President Jerome Powell, to reduce interest rates,” Trump said in a publication about Truth Social.
Trump also said without evidence that political considerations have played a role in Powell decision making in the interest rate policy.
On Friday, Powell refused to respond directly to Trump. Even so, Powell strongly rebuked concern about his political independence.
“I do not respond to political comments,” Powell said, added that it would be inappropriate for the Central Bank to comment on the commercial policy of the United States.
“We try to stay as far as possible from the political process,” Powell said. “That is what people expect from us.”
Powell’s comments occurred approximately two weeks after the Fed chose to maintain stable interest rates, even when the Central Bank said it expected greater inflation and more slow economic growth than it had predicted in December.
Despite the growing commercial tensions and the turbulence of the market since Trump assumed the position in January, the economy remains solid by several key measures.
The unemployment rate is at a historically low level. Meanwhile, inflation is well below a peak reached in 2022, although price increases register almost a higher percentage point than the 2%Fed objective.
A new job report on Friday showed an increase in hiring last month, exceeding the expectations of economists and challenging the growing concern in Wall Street of a possible recession.
The United States added 228,000 jobs in March, according to data from the United States Labor Statistics Office. That figure marked a significant increase of 151,000 jobs added in the previous month.
Even so, the backward report on the labor market could not calm the fears of investors after radical rates issued by Trump earlier this week.
On Friday, the Dow Jones Industrial Avenge collapsed 1,600 points, or 4%, while the S& P 500 Sunk 4.5%. The technological heavy nasdaq decreased 4.6%.
The sale of the sale of losses on Thursday, which marked the worst day of negotiation since 2020.
When addressing the conference in Washington, DC, on Friday, Powell said that it is still too early to determine how Trump administration changes will affect the upcoming decisions of interest rates.
For now, Powell said, it is “too soon to say what will be the appropriate path for monetary policy.”
This is a development story. Consult the updates again.
