Federal reserve chair signals no hurry to lower rates

Jerome Powell, the Federal Reserve Chair, told lawmakers on June 24, 2025, that the central bank is not in a rush to reduce interest rates. Speaking to the House Financial Services Committee, Powell explained that the economy is stable enough to wait for clearer signs before making changes. He pointed out that the job market is strong and inflation, though slightly high, is manageable.

Powell’s comments push back against calls for quick rate cuts, especially from President Donald Trump. He suggested that Trump’s new tariff policies could raise prices and slow growth, but their full impact is still unclear. The Fed wants more data to understand how these changes will affect the economy. Despite some Fed officials, like Christopher Waller and Michelle Bowman, hinting at possible rate cuts as early as July, Powell remains cautious.

He noted that recent data shows inflation cooling, with consumer prices rising just 0.1% from April to May. However, the Fed expects tariffs to push prices up later this year. Powell emphasized the Fed’s independence, saying decisions are based on data, not political pressure. With rates steady at 4.25% to 4.5%, the Fed is taking a wait-and-see approach, likely holding off on cuts until at least September.