Powell is repeated that he will not reduce prices anytime soon when Trump tells him to “stop playing politics” now
President Donald Trump, speaking from the White House on Friday through the social fact, told the Federal Reserve Chairman Jerome Powell to stop playing and reduce interest rates immediately.
Trump said this is the perfect moment of behavior, noting that prices have decreased, and inflation is cooling and high employment numbers. Powell accused him of “always late” and told him frankly of “lowering interest rates” and “stopping playing policy.” He claimed that the prices of eggs have decreased by 69 %, describing it as a “great victory for America.”
But Jerome does not listen. Speaking on the same day in Arlington, Virginia, Powell told a room of business correspondents that the Federal Reserve will not affect prices until the clearest readings are read by the new Trump tariff for the economy.
This is after Trump slapped a 10 % tariff in all imports on Wednesday and sparked immediate revenge on China, which again returned by imposing 34 % on everything coming from the United States
Powell says the federal reserve will not move until the effect becomes more clear
This Federal Reserve Chairman has admitted this can cause real problems. He said that the situation now has “very unconfirmed” consequences and warned that new commercial restrictions are greater than anyone expected.
Jerome explained that these definitions are “much larger than expected”, and warned that the effects will not be small. He said: “It is possible that the same thing is true in economic effects, which will include higher inflation and slower growth.”
Powell also said the main function of the Federal Reserve is to maintain inflation under control and firm expectations. He said in Maad’s statements: “Our commitment is to maintain the long -term inflation expectations, and to ensure that the price level in the price level does not become a problem with continuous inflation.”
Although the economy still seems stable at the present time, Powell said that the tariff war could turn it quickly. He said that this depends on the period that continues these definitions and how they end up to hit consumers.
“Although customs tariffs are likely to generate at least a temporary rise in inflation, it is also possible that the effects are more stable.”
The Federal Reserve Chairman said that what happens after that depends on the depth of high prices and the speed of its transition to the level of consumer. He said that the federal reserve function now is to ensure that these effects do not become permanent.
The Federal Reserve State is to maintain low inflation and maintain full employment. Currently, basic inflation sits by 2.8 %, which is still higher than the Federal Reserve 2 %. Powell pointed out that although customs tariffs are usually seen as a temporary batch of prices, Schenengan Trump is forcing the Federal Reserve to think differently.
The markets fall again with encryption and China is releasing China
Meanwhile, Wall Street sees another brutal day for sale. American stocks took another diving on Friday, as they deepened after the bloodbath that started earlier this week. Investors panicked due to China’s response to Trump’s move, which just came hours before speaking Powell.
But Crypto was amazingly calm. Bitcoin remained positive, gained 1.7 % and up to 83,396.89 dollars, based on Coingecko Data. Most other major metal coins were also. The encryption market managed to continue even when traditional markets were shattered again.
The encryption arrows did not do it well. Coinbase has decreased about 8 %, while Microstrategy decreased by more than 1 %. Gold took a strong blow as well. The gold spot decreased by 2.6 %, as it decreased to $ 3,038.50 an ounce. Gold futures in the United States sank 2.9 %, fell at $ 3,020.79.
Traders are already betting that Powell will surrender. Market data showed that the increasing expectations that the Federal Reserve will reduce prices by a full percentage point before the end of the year, with some traders expecting the first reduction that could come in June. But Powell did not give any sign of the tendency in this way.
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