Powell/Trump's views on interest rate cuts (April 4, 2025) The core points include: Economic and inflation situation: Powell pointed out that the US economic growth is showing signs of weakness, while inflationary pressures are rising. The coexistence of weak growth and rising inflation poses complex trade-offs for the Federal Reserve in formulating monetary policy. Interest rate cut stance: He clearly stated that it is "too early" to discuss interest rate cuts now. The Federal Reserve is currently in a favorable position to 'wait for clearer signals', emphasizing the need for more data to determine the direction of the economy, especially the potential continued impact of the Trump administration's tariff policies. Tariff impact: Powell specifically mentioned that Trump's tariff policies have exceeded expectations and may have a long-term inflationary effect, while also putting downward pressure on economic growth. He emphasized that the Federal Reserve will closely monitor these uncertain factors. Policy expectation: Powell reiterated that the Federal Reserve's forecast of cutting interest rates twice within 2025 remains unchanged, indicating a cautious attitude towards the current interest rate level (assuming it remains in the range of 4.25% -4.5%). Powell's speech reflects a high level of vigilance towards economic uncertainty, rejecting hasty adjustments to monetary policy and maintaining the Federal Reserve's consistent independence and data-driven decision-making style. Trump's view on interest rate cuts: Trump stated that "now is the best time for Powell to cut interest rates" and called Powell always "slow to act", hoping that he will take immediate action to change his image. He believes that interest rate cuts can alleviate market turbulence and economic pressure caused by tariff policies. Powell's view on interest rate cuts: Rejecting political pressure: Powell did not directly respond to Trump's call in his speech, but indirectly indicated that there would be no hasty interest rate cuts due to political factors by emphasizing economic data and uncertainty. Summary: On April 4, 2025, Powell's speech stated that the Federal Reserve, under the dual pressure of Trump's tariff policy (rising inflation and slowing growth), chose to remain unchanged and maintain the expectation of cutting interest rates twice this year, rejecting Trump's urgent request for interest rate cuts. This article is sponsored by Bitget | @ Bitgetzh