Odaily News Nick Timiraos, the "Federal Reserve mouthpiece," analyzed that Federal Reserve Chairman Powell downplayed expectations of alleviating the economic weakness that may be caused by Trump's tariffs through interest rate cuts. Powell frequently used the word "wait" at the press conference, emphasizing that the Federal Reserve is not in a hurry to take action.
Timiraos believes that Trump's trade policies have led to a divergence in monetary policy between the United States and other economies. Other economies have not significantly increased import tariffs and are facing problems with weak demand and employment, rather than the price pressures that the United States may face. In addition, given that the United States has just experienced high inflation, the Federal Reserve is reluctant to risk preemptively cutting interest rates to support slowing employment, fearing that it will exacerbate inflation in the short term.
Therefore, the Fed's stance is different from that of the European, Canadian and British central banks. Powell hinted that the Fed will only consider cutting interest rates after seeing evidence of a significant slowdown in economic growth, and it may be a rapid rate cut. (Jinshi)