Jerome Powell Cites Trump’s Tariffs as Reason For Inflation

Airdrop Is Live CaryptosHeadlines Media Has Launched Its Native Token CHT. Airdrop Is Live For Everyone, Claim Instant 5000 CHT Tokens Worth Of $50 USDT. Join the Airdrop at the official website, CryptosHeadlinesToken.com In his FOMC speech earlier on May 7, US Federal Reserve Chair Jerome Powell pointed to President Donald Trump’s tariff policy as a major reason inflation pressures are not easing as quickly as hoped. In his latest comments, Powell signaled that the central bank’s decision to hold interest rates steady is directly tied to the uncertainty surrounding Trump’s aggressive trade actions.Federal Reserve Chair Jerome Powell on Rate Cut Hold BackAccording to insiders and financial analysts following the Federal Reserve’s decision closely, Powell’s tone during the post-meeting briefing was cautious. Reports indicated that the central bank left interest rates unchanged for the third time this year. Issuing an FOMC statement, officials held the federal funds rate at 4.25% to 4.5%. The Fed Chair gave rare insight into the deeper concerns troubling the committee.Jerome Powell explained that the Federal Reserve could not lower rates now, even though the economy is slowing. Inflation is not falling fast enough, and the tariffs are part of the reason. By making goods more expensive and increasing trade tensions, these policies have made it harder for the Fed to take action.A notable takeaway, echoed by digital asset critic and economist Peter Schiff in a recent post on X, is that Powell may have admitted between the lines that the economy is in a tight spot.He suggested that the Federal Reserve cannot cut interest rates while the economy is weakening because inflation is still too high. At the same time, raising rates could spark a financial crisis.Meanwhile, talks between the United States and China have shown little progress. Trump made it clear this week that he would not roll back tariffs to restart negotiations. The current U.S. tariff setup includes a 20% base tariff on Chinese goods, with an extra 125% on items not exempted under Section 232.It is worth noting that Trump’s firm stance has made it difficult for financial markets and businesses to plan. While other countries are working to secure tariff deals with the U.S., the situation’s unpredictability continues to weigh heavily on global trade.Market Reaction and Uncertainty LoomsThe uncertainty cited by Jerome Powell, bordering on the US-China trade tensions, has impacted the markets. The crypto market recently experienced a decline after China denied trade talks with the US. However, both parties are getting to the negotiation table later this week.Similarly, Investors have been wary of the ongoing trade tensions, which have resulted in fluctuating stock prices and shifts in market sentiment. With tariffs continuing to rise, there is concern about the potential long-term effects on global trade and economic growth.Based on general sentiments, the Federal Reserve’s decision to hold interest rates steady, despite pressure from President Donald Trump to lower them, reflects the uncertainty surrounding economic conditions. ✓ Share: Godfrey Benjamin Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on X, Linkedin Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.Source link