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Powell confirms that the Fed would have cut by now were it not for tariffs

www.cnbc.com Powell confirms that the Fed would have cut by now were it not for tariffs

The U.S. central bank would likely have begun cutting interest rates again if not for the plan to enact higher levies on imports, the Fed chief said.

Powell confirms that the Fed would have cut by now were it not for tariffs

Federal Reserve Chair Jerome Powell said Tuesday that the U.S. central bank would have eased monetary policy by now if not for Donald Trump’s tariff plan.

When asked during a panel if the Fed would have lowered rates again this year had Trump not announced his controversial plan to impose higher levies on imported goods earlier this year, Powell said, “I think that’s right.”

“In effect, we went on hold when we saw the size of the tariffs and essentially all inflation forecasts for the United States went up materially as a consequence of the tariffs,” Powell said at European Central Bank forum in Sintra, Portugal.

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