[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Benzinga [@Benzinga](/creator/twitter/Benzinga) on x 305.7K followers Created: 2025-07-02 20:59:51 UTC Federal Reserve Chair Jerome Powell said Tuesday that the Fed likely would have lowered interest rates this year if not for President Donald Trump’s aggressive tariff plans. Speaking at the European Central Bank forum in Portugal, Powell explained that inflation forecasts rose significantly after Trump’s tariff announcements, which led the Fed to hold off on easing. “In effect, we went on hold when we saw the size of the tariffs,” Powell said. He added that all inflation projections increased as a result, complicating any plans to cut rates. When asked whether a rate cut could happen at the Fed’s July meeting, Powell kept options open. “I wouldn’t take any meeting off the table or put it directly on the table,” he said, adding that the decision will depend on how the data evolves. Powell’s comments come as Trump continues to criticize him for keeping rates “artificially high,” pushing for a benchmark rate of just X% or 2%. The Fed’s current rate is roughly double that. Senator Elizabeth Warren has also blamed Trump’s tariffs for tying the Fed’s hands. Meanwhile, speculation is growing about Powell’s future, especially after Treasury Secretary Scott Bessent said he’d “do what the President wants” regarding a potential replacement in 2026.  XXXXX engagements  **Related Topics** [inflation](/topic/inflation) [portugal](/topic/portugal) [central bank](/topic/central-bank) [tariffs](/topic/tariffs) [trumps](/topic/trumps) [fed](/topic/fed) [jerome powell](/topic/jerome-powell) [federal reserve](/topic/federal-reserve) [Post Link](https://x.com/Benzinga/status/1940515788726698223)
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Benzinga @Benzinga on x 305.7K followers
Created: 2025-07-02 20:59:51 UTC
Federal Reserve Chair Jerome Powell said Tuesday that the Fed likely would have lowered interest rates this year if not for President Donald Trump’s aggressive tariff plans.
Speaking at the European Central Bank forum in Portugal, Powell explained that inflation forecasts rose significantly after Trump’s tariff announcements, which led the Fed to hold off on easing.
“In effect, we went on hold when we saw the size of the tariffs,” Powell said. He added that all inflation projections increased as a result, complicating any plans to cut rates.
When asked whether a rate cut could happen at the Fed’s July meeting, Powell kept options open. “I wouldn’t take any meeting off the table or put it directly on the table,” he said, adding that the decision will depend on how the data evolves.
Powell’s comments come as Trump continues to criticize him for keeping rates “artificially high,” pushing for a benchmark rate of just X% or 2%. The Fed’s current rate is roughly double that.
Senator Elizabeth Warren has also blamed Trump’s tariffs for tying the Fed’s hands. Meanwhile, speculation is growing about Powell’s future, especially after Treasury Secretary Scott Bessent said he’d “do what the President wants” regarding a potential replacement in 2026.
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Related Topics inflation portugal central bank tariffs trumps fed jerome powell federal reserve