The Fed chief said Tuesday that it should see the duties’ impact on consumer prices in June and July numbers, adding that a smaller effect than anticipated is also important for policymaking.
Hours before Powell’s testimony, Trump again urged the chair of the independent Fed to slash rates, saying these should be “at least two to three points lower” as inflation remains benign.
“I hope Congress really works this very dumb, hardheaded person, over,” Trump wrote on his Truth Social platform.
On Trump’s criticism, Powell said: “We always do what we think is the right thing to do, and you know, we live with the consequences.”
New York Fed President John Williams separately supported maintaining the central bank’s monetary policy stance.
“Much of the soft data we’ve seen in recent months captures the heightened uncertainty about the path of the economy,” he said in remarks prepared for a Tuesday event. “But it’s too early to say what the future trajectory of the hard data will be.”
