Former U.S. President Donald Trump has once again publicly called on the Federal Reserve to lower interest rates quickly, but Fed Chairman Jerome Powell does not seem to be &#34;listening.&#34; Commentators believe that Powell's remarks this time are even more hawkish than his statements made two weeks ago after the Fed's meeting.On Friday, April 4th, during the early trading session of U.S. stocks, Trump posted on social media, directly naming Powell twice and demanding a rate cut. His post first stated that this would be &#34;an excellent time for Powell to lower rates,&#34; noting that Powell has always been &#34;slow&#34; in his actions, but now he can change his image and &#34;speed up.&#34;Trump then mentioned that energy prices are falling, interest rates are declining, inflation rates are decreasing, and even egg prices have dropped by 69%, while employment rates are rising—all of this happening within two months, which he described as &#34;a huge victory for the United States.&#34; He insisted that Powell should lower rates and &#34;stop playing politics.&#34;However, just minutes after Trump's post, Powell quickly contradicted him in a public statement. In his first public remarks following Trump's announcement of widespread reciprocal tariffs, Powell reiterated that the Fed needs to wait and observe until the situation is clear before considering action. He pointed out that the new tariffs announced by Trump far exceeded expectations and could continue to push inflation higher, emphasizing that the Fed needs to ensure inflation expectations do not rise.According to CCTV News, Powell expressed shock at the scope of the tariffs imposed by Trump, indicating that the economic impact of the tariffs would be greater than previously thought. While Powell was reluctant to disclose whether he believes the U.S. economy is heading toward a recession, he acknowledged that the uncertainty surrounding trade policy is putting pressure on businesses, and an increasing number of forecasts indicate that the risk of recession is rising.Tariffs &#34;far exceed expectations&#34; may have a greater economic impact than anticipatedPowell believes that the U.S. economy currently appears strong but noted that due to Trump's announced reciprocal tariff plan, the Fed faces a &#34;highly uncertain&#34; outlook. He stated that the recently announced tariffs by the U.S. &#34;far exceed expectations,&#34; and he believes the economic impact of the tariffs may also be greater than anticipated:&#34;Uncertainty remains very high, and what is now clear is that the magnitude of the tariff increases will be significantly larger than expected.&#34;&#34;The economic impact may be similar, including rising inflation and slowing growth. The scale and duration of these (tariff) impacts remain uncertain.&#34;Powell commented that the non-farm payroll report released on Friday further demonstrated that the U.S. labor market is &#34;generally balanced and not a significant source of inflationary pressure.&#34; He noted that the unemployment rate remains low at 4.2%, and the dual effects of low layoff rates and slowing labor force growth have kept the unemployment rate &#34;roughly stable.&#34;It is too early to determine the appropriate monetary policy path to maintain long-term inflation expectationsPowell emphasized the threats posed by tariffs while suggesting that the Fed will focus on controlling inflation. In his prepared speech, he stated:&#34;Our responsibility is to maintain long-term inflation expectations stable and ensure that one-time price increases do not become a persistent inflation problem.&#34;&#34;We can fully wait until the situation becomes clearer and then consider adjusting our policy stance. It is still too early to determine what the appropriate path for monetary policy is.&#34;The impact of tariffs on inflation may be more lastingAt the recent Federal Reserve monetary policy meeting that concluded more than two weeks ago, it was decided to continue pausing interest rate cuts. At the subsequent press conference, Jerome Powell introduced the temporary impact of tariffs. At that time, he stated that the baseline expectation remains that the impact of tariffs on inflation will be temporary. Speaking about the impact of tariffs this Friday, Powell acknowledged that tariffs may have a lasting impact on inflation. He said:&#34;While tariffs are highly likely to at least lead to a temporary rise in inflation, the impact may also be more lasting. Avoiding this will depend on whether long-term inflation expectations can be stabilized, the scale of the impact, and how long it takes for the impact to fully transmit to prices.&#34;Commentators noted that compared to his last speech, Powell more directly acknowledged the risks of tariffs pushing up inflation, which is noteworthy.Data still shows a robust economy, but uncertainty is pressuring the Fed to stay away from politicsDuring the Q&amp;A session after reading his speech, Powell made it clear that he would not respond to any comments from elected government officials, effectively declining to comment on Trump's earlier calls for interest rate cuts.When asked about the risk of an economic recession, Powell stated that the data &#34;still shows a robust economy,&#34; but he understands that uncertainty is putting pressure on the American public. He acknowledged that tariffs are higher than expected and said, &#34;We still do not know what the final outcome will be.&#34;Powell stated that people expect the Federal Reserve to speak the truth, &#34;and that is exactly what we are going to do,&#34; adding that the Fed is not responsible for trade policy.Powell emphasized that the Federal Reserve is not a political organization, and Fed officials do not comment on fiscal policy.&#34;We try to stay away from political agendas.&#34;Powell said he hopes the Fed will be a &#34;source of calm, rational analysis, and stability.&#34;Policy uncertainty will decrease in the next 12 months; waiting for clarity is a good opportunity for the Fed to step back from easingSpeaking about the current uncertainty, Powell stated that this uncertainty should decrease in the next 12 months, and the actual impact of new government policies should become clear. The short-term impact of policies is highly uncertain.Powell insisted that the Fed needs to have a clearer understanding of how White House policies will affect the economy, and until then, it is still too early to draw conclusions.&#34;We are waiting for the policy path to become clearer.&#34;Powell believes that now is a &#34;good opportunity&#34; for the Fed to step back after a series of interest rate cuts, and it is necessary to wait for clarity in the situation.The Fed does not need to rush to cut interest ratesPowell mentioned the recent external concerns about the risk of stagflation in the U.S. economy, which would put the Fed in a difficult position if both unemployment and inflation rise.Powell made it clear that Fed officials do not want that situation to occur. Once stagflation sets in, Powell believes that Fed officials need to look at how far each variable is from the employment and inflation targets and how long it will take to return to those targets. He said, generally, &#34;If a variable is further from the target, you will pay more attention to it.&#34;Powell continued by saying that trade, energy, climate, and immigration are not within the Federal Reserve's responsibilities. The Federal Reserve should not involve itself in issues that do not fall under its duties.Powell stated, &#34;It feels like we (the Federal Reserve) don't need to rush to change interest rates.&#34; This statement raised questions from the event host, who asked, &#34;Really?&#34;Powell then mentioned that the Federal Reserve's staff is working to digest this week's tariff-related news in preparation for the economic outlook forecast to be disclosed in June.The housing market may be hit by tariffs, and many, including the Federal Reserve, are waiting and watchingPowell discussed how the real estate market could be impacted by tariffs and immigration policies, as these policies may lead to labor shortages and rising prices for raw materials like lumber.Powell stated that the U.S. has not built enough housing to meet the public's demand. Home prices will face upward pressure in the long term. The current low mortgage rates will dissipate over time.Powell also mentioned that there has been a lot of talk about people waiting for clarity, saying, &#34;Many, including us (the Federal Reserve), are waiting and watching.&#34;Similar to last month's post-meeting press conference, Powell reiterated the need to differentiate between &#34;soft&#34; data from surveys that signal economic alarms and &#34;hard&#34; data that shows a robust economy.Powell stated, &#34;The economy is primarily driven by consumer spending.&#34; He noted that sometimes survey results are negative, and even when sentiment is low, people continue to spend. Business investment is also susceptible to confidence. &#34;Everyone should read the (Federal Reserve's) Beige Book.&#34;Recently had conversations with other central bank governors, fully intends to serve out this term as Fed ChairPowell mentioned that he does not have a group chat with central bank governors around the world, but they do exchange texts. He said he has had conversations with other central bank governors recently but did not disclose the specifics of those discussions. &#34;We are not politicians, so we think about these matters in a non-political way.&#34;Powell expressed that he really enjoys the job of Federal Reserve Chair and finds it fulfilling. He acknowledged that the job can be stressful at times, stating that there is no certainty in this role and mistakes can happen. However, he reiterated his intention to continue until his term naturally ends, in other words, until May 2026. He said:&#34;I fully intend to serve out this term (as Federal Reserve Chair).&#34;This article is compiled from &#34;Wall Street Insight,&#34; author: Li Dan; edited by He Yucheng of Zhitong Finance.

Former President Trump called on the Federal Reserve to cut interest rates, but Fed Chairman Powell stated that they need to wait and see, as newly imposed tariffs may drive up inflation. Trump pointed out on social media that the current economic situation is good and urged Powell to act quickly. However, Powell emphasized that the impact of tariffs is greater than expected, and the economic outlook is uncertain, requiring caution

- President Trump has publicly urged the Federal Reserve to lower interest rates, but Chairman Powell appears unresponsive, adopting a more hawkish stance than in previous statements.  
- Powell emphasized the need for caution regarding the economic impact of Trump's newly announced tariffs, which he believes could lead to higher inflation and increased uncertainty.  
- He stated that the Fed will wait for clearer economic signals before adjusting monetary policy, asserting that the current economic data still shows strength despite rising uncertainties.

Zhitong

Trump calls for a quick interest rate cut, Powell "slaps back": tariffs far exceed expectations and may continue to drive up inflation, the Federal Reserve will observe before taking action

特朗普喊话快降息，鲍威尔 “打脸”：关税远超预期，或持续推升通胀，美联储先观望再行动