Jerome Powell said that the Fed would have cut interest rates in the absence of Trump's tariffs, but inflation has risen because of them.

Speaking at a forum organized by the European Central Bank, Jerome Powell said the Federal Reserve would have continued easing monetary policy and cut interest rates this year if not for Trump's plan to impose tariffs. These tariffs have led to a significant increase in US inflation forecasts. The Fed currently keeps its benchmark interest rate between 4.25% and 4.5%, and Powell emphasized that future decisions will depend on economic data. Analysts expect interest rates to remain unchanged in July.