According to ChainCatcher, citing Jinshi, at the European Central Bank event in Portugal, Federal Reserve Chairman Powell stated that if it were not for President Trump's tariff policies, the Fed would have started cutting rates in 2025 and would currently be adopting a more relaxed monetary policy.
When asked whether the uncertainty caused by the current U.S. government's tariff system has led to a delay in rate cuts, Powell gave an affirmative response, adding that due to tariffs, almost all predictions about U.S. inflation rates have significantly increased.
Powell acknowledged that despite increasing pressure from the U.S. government, the Federal Reserve remains in a mode of maintaining interest rates. He also stated that given the current economic outlook's instability, the Fed is currently observing the situation to gather more information.
