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Fed Holds Rates at 4.25%-4.5% as Trump Calls Powell a Fool, Powell Cites Tariff Concerns

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Updated May 11, 2025, 05:12 AM

The Federal Reserve maintained its benchmark interest rates between 4.25% and 4.5% amid concerns about inflation and unemployment risks. Fed Chair Jerome Powell emphasized the central bank's independence and its commitment to its dual mandate of maximum employment and price stability, stating that President Donald Trump does not influence the Fed's decisions. However, Powell expressed concerns about the economic impact of Trump's tariffs. Despite the Fed's cautious stance, Trump criticized Powell, calling him a "fool" and accusing him of being slow to respond to inflation.

Vice President JD Vance supported Trump's critique, describing Powell as well-intentioned but largely mistaken. Several Federal Reserve officials, including Governors Lisa Cook and Christopher Waller, and Presidents John Williams, Beth Hammack, Alberto Musalem, and Austan Goolsbee, were scheduled to speak on monetary policy. Powell and other Fed officials indicated that more information is needed before considering interest rate cuts, with the market expecting a gradual decline in rates. Analysts warn that ongoing political pressure and tariff-induced inflationary pressures could complicate the Fed's efforts to manage the economy.

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#Federal Reserve #Fed #Jerome Powell #Donald Trump #Powell #Trump #JD Vance #Lisa Cook #Christopher Waller #John Williams #Beth Hammack #Alberto Musalem #Austan Goolsbee

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Sources

finance.yahoo.com(3)l.capital.fr(2)project-syndicate.org estadao.com.br

Project Syndicate

@ProSyn

.@realDonaldTrump’s attacks on the independence of the US @federalreserve – which he has long held should be maintaining lower interest rates – make it all the less likely that tariff-induced inflationary pressure will be reined in, warns Koichi Hamada. https://t.co/E4492HFWAx https://t.co/rkuIDs6EWp

Yahoo Finance

@YahooFinance

President Trump resumed his attacks on Federal Reserve Chairman Jerome Powell on Wednesday, saying the central bank boss 'doesn’t have a clue' a day after the central bank left rates unchanged and Powell urged patience on monetary policy. https://t.co/useol3Rp8e https://t.co/LEzWI2fthu

Estadão 🗞️

@Estadao

EDITORIAL: The Fed resists Trump - Called an 'idiot' by the president, the head of the American central bank is an Olympian on interest rates (via @opiniao_estadao) https://t.co/gbpfjdjw5o 📷 Andrew Harnik/Getty Images/AFP https://t.co/cvGH4lEhgb