Fed Keeps Rates Steady as Powell Dismisses Preemptive Cuts Amid Tariff Uncertainty

"The Federal Reserve kept interest rates steady at 4.25%–4.5% this week, but the real headline was Fed Chair Jerome Powell shutting the door on a preemptive rate cut. With inflation still running hot and new economic risks rising from President Trump’s tariffs, Powell made it clear: the Fed isn’t budging until it sees more data. “We actually don’t know what the right responses to the data will be,” Powell said, dousing hopes of a quick policy pivot.

Trump’s surprise tariff rollout in April caught even the Fed off guard. Powell admitted the tariffs were “substantially larger than anticipated,” and warned they could push inflation up and economic growth down—potentially delaying the Fed’s ability to hit its dual mandate of stable prices and full employment. For now, Powell says the Fed is “in a good position to wait and see,” but also noted the risks to both inflation and unemployment have grown..."

Read it all [here](https://thestockmarket.news/p/fed-keeps-rates-steady-as-powell-dismisses-preemptive-cuts-amid-tariff-uncertainty)