Jerome Powell Stops Promising Policy Easing; Fed to Continue Focus on Inflation
The Fed chairman spoke on Friday amid market panic following Trump's tariff announcement.
By Stephen Alpher Updated April 4, 2025 7:28 PM Published April 4, 2025 3:41 PM
What you need to know:
- US Federal Reserve Chairman Jerome Powell said inflation needs to be controlled, despite the fact that the president's tariff policy has caused panic in the markets.
- He noted that the central bank has the opportunity to wait and assess the situation before making a possible adjustment to the current policy.
- US stock markets are falling for a second day in a row, while Bitcoin is starting to show signs of easing its dependence.
Investors betting on a significant dovish turn in Fed policy after the president's tariff announcement on Wednesday and the subsequent two-day decline in stocks should be patient.
“We are in a good position to wait for more clarity before considering any changes in our policy,” Fed Chairman Jerome Powell said in prepared remarks at the annual conference of the Society for Business Editing and Writing. “It is too early to discuss what the right course of monetary policy should be.”
Noting that tariffs are “significantly higher” than expected, Powell said the Fed's job is to ensure that a temporary rise in inflation does not become permanent.
After bouncing a bit ahead of Powell's speech, perhaps in hopes of a more dovish stance, Bitcoin (BTC) has returned below $83,000, remaining roughly where it was 24 hours ago. The cryptocurrency is faring much better than stocks, with the Nasdaq now down 4.2% after yesterday's 6% plunge.
President Trump expresses his feelings
Minutes before Powell spoke, the president challenged the Fed chairman.
“This would be the perfect time for Fed Chairman Jerome Powell to cut interest rates,” Trump wrote in a post on Truth Social. “He's always 'late,' but now he can change his image, and fast… Cut rates, Jerome, and stop playing politics.”
