Powell Holds the Line Amid Market Chaos, Ignores Trump’s Rate-Cut Push
Federal Reserve Chair Jerome Powell on Friday declined to offer any immediate support to rattled markets, signaling a wait-and-see approach even as investors reel from President Trump’s surprise tariff escalation.
“It’s too soon to say what will be the appropriate path for monetary policy,” Powell said in a speech at the SABEW annual conference. “We are well positioned to wait for greater clarity before making adjustments.”
The Fed chief acknowledged the scale of the new tariffs — calling them “significantly larger” than anticipated — but maintained that the central bank’s primary concern is ensuring any inflationary impulse doesn’t become entrenched.
Bitcoin, which had risen slightly in the hours leading into Powell’s remarks, slipped back below $83,000 shortly after. Despite the mild crypto pullback, equities remained under heavy pressure, with the Nasdaq losing another 4.2% following Thursday’s 6% rout.
Trump Applies Pressure
Minutes before Powell’s comments, President Trump took to Truth Social to push for immediate easing.
“This would be the perfect time for Fed Chairman Jerome Powell to cut interest rates,” Trump posted. “He is always ‘late,’ but he could now change his image, and quickly.”
So far, Powell is staying above the fray — and markets will have to adjust without a Fed lifeline, at least for now.
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