Federal Reserve Chair Jerome Powell has left the door open for a potential interest rate cut as soon as this month, defying President Donald Trump’s repeated calls for a slash. During a panel discussion in Portugal, Powell said he wouldn’t rule out a rate cut if data evolves positively, amid criticism from Trump who urged him to lower rates.
The Fed remains focused on its dual mandate of controlling inflation and delivering maximum employment, according to Powell. The central bank will hold four rate-setting meetings this year, with the next meeting scheduled for July 29-30.
In recent months, the Fed has taken a wait-and-see approach as it observes potential effects of Trump’s tariff policy. Last month, Powell said a majority of Fed officials support additional interest cuts this year, citing evolving data. The central bank last adjusted interest rates four meetings ago and has forecasted two quarter-point rate cuts over 2025.
Trump has been critical of Powell, calling for sharp interest rate reductions from the current range of 4.25-4.5%. However, Powell’s comments suggest that a rate cut is possible if data supports it.
Source: https://abcnews.go.com/Business/fed-chair-powell-rule-interest-rate-cut-month/story?id=123374089