Trump to Powell: Cut Rates. Powell: Nope, Not Yet

Fed chief Jerome Powell weighed in on the tariffs of President Trump on Friday, saying that the central bank is worried about their effect on inflation but isn't ready to make a move on interest rates.

• "We are well positioned to wait for greater clarity before considering any adjustments to our policy stance," Powell told business journalists, per CNBC. "It is too soon to say what will be the appropriate path for monetary policy."
• Powell, though, voiced concern as stock markets around the world faced turbulence. "While uncertainty remains elevated, it is now becoming clear that the tariff increases will be significantly larger than expected," he said, per the Wall Street Journal, adding that it was "highly likely" that the tariffs will lead to "at least a temporary rise in inflation."

• Powell's comments came shortly after Trump urged the Federal Reserve to cut rates. "This would be a PERFECT time for Fed Chairman Jerome Powell to cut Interest Rates," wrote the president on Truth Social. He complained that Powell was "always late" on such cuts and told him, in all caps, to "stop playing politics."
• The Fed chief suggested the central bank wouldn't act until it became clear whether the US was looking at a temporary blip in inflation or a more entrenched variety. "Our obligation is to ... make certain that a one-time increase in the price level does not become an ongoing inflation problem," he said, per the AP.
• The comments didn't seem to make a dent in Wall Street's mood. The Dow continues trading deep in the red and was down more than 1,400 points at midday.

(More Federal Reserve stories.)