The head of the US Federal Reserve said that Donald Trump’s commercial policy stopped the possibility of reducing rates during the first half of the year. The first market reactions.
The president of the United States Federal Reserve (Fed), Jerome Powellhe said that from the North American Central Bank an impact on prices for the coming months. In this regard, he argued that if it were not for the tariffs promoted by the US president, Donald Trumpthey would have already trimmed the reference rate of their monetary policy.
During his participation in the annual meeting of central banks, Powell said they are waiting “higher price (pricing) readings during the summer.” Anyway, he assured that “If the tariffs ignore a second, they will see that inflation is behaving practically as we expected,”.
In fact, before the consultation on itself, the Fed had trimmed the fees if it were not for Donald Trump’s commercial policy to impose reciprocal tariffs, he said yes. “I think it’s correct. We put pause when we saw the size of the tariffs and where essentially all inflation forecasts for the United States increased materially as a result of tariffs, “he explained.
When asked if Julio was too soon to consider a feat cuts, the head of the Central Bank said “cannot say it”, but that the decision would depend on the economic data.
News in development.
Source: Ambito
