Archive · 19 Jun 2025
Fed Holds Rates, Powell Warns of Tariff-Driven Inflation
The Federal Reserve decided to keep interest rates the same, but there's a worry that new taxes on imported goods (tariffs) might make prices go up.
The Fed still plans to possibly lower interest rates later, but they're waiting to see how these new taxes affect prices.
The economy is expected to slow down a bit, with more people possibly losing their jobs.
The president, Donald Trump, wants the Fed to lower rates drastically.
Federal Reserve held interest rates steady.
Jerome Powell warned tariffs could trigger inflation.
Policymakers project two rate cuts before 2025.
Unemployment is projected to rise to 4.5% by year-end.
Trump criticized Powell, demanding rate cuts.
- Who
- Jerome Powell, Donald Trump, and Fed policymakers.
- What
- The Federal Reserve held interest rates steady amidst concerns about tariffs.
- When
- On Wednesday, with projections into 2025.
- Where
- USA
- Why
- To assess the impact of tariffs on the economy and manage monetary policy.
Powell's Stance
Trump's Stance
Monetary Policy Approaches
Powell's Stance
Tariffs may cause a surge in inflation and require a cautious approach to rate cuts.
Trump's Stance
President Trump demands immediate and aggressive rate cuts.
- Interest Rate
- 4.25–4.50%
- Rate Cut Projection
- Two before end of 2025
- GDP Growth Forecast
- 1.4% in 2025
- Unemployment Projection
- 4.5% by year-end
- Inflation Target
- 2%
Sources
Trump Slams 'Stupid' Fed Chair Jerome Powell Ahead Of Key Meeting On Interest Rates | Watch
US Fed keeps interest rates unchanged amid Trump tariff jitters, cuts growth forecast
Trump Calls Fed Chair Jerome Powell 'Stupid', Questions If He Can Appoint Himself To US Federal Reserve
Fed chair Powell says rate path unclear but tariff impact is coming
Fed’s Powell says he expects to see more tariff-driven price hikes in coming months