Fed Chair Jerome Powell rebuffs Trump’s push to cut rates, warns tariffs will likely push inflation higher

Federal Reserve Chair Jerome Powell rejected President Trump's demand to cut interest rates, emphasizing the likelihood of higher inflation and slower economic growth following the administration's new tariffs. Despite recent economic data showing a decline in inflation, Powell stressed the need for caution and clarity before altering the Fed's policy stance. His remarks at the SABEW conference highlighted the Fed's commitment to keeping long-term inflation expectations anchored, amid rising tensions with the White House and market volatility.
In the wake of Trump's 'Liberation Day' tariffs, which impose 10% on all imports, investors are increasingly worried about the economic ripple effects, with markets anticipating potential rate cuts by the Fed. Powell acknowledged the significant scope of the tariffs and warned of possible outsized economic fallout. While maintaining a measured stance, the Fed remains focused on its dual mandate of price stability and maximum employment, with Powell highlighting strong labor market data as a sign of the economy's resilience.
RATING
The news story provides a timely and accurate account of the Federal Reserve's response to President Trump's new tariffs and the implications for U.S. monetary policy. It effectively captures the tension between the Fed and the White House, presenting both perspectives in a balanced manner. The article is clear and accessible, making complex economic issues understandable for a general audience. However, it could benefit from greater source variety and transparency, particularly regarding the economic data and forecasts mentioned. Including more expert opinions and detailed context would enhance the article's credibility and engagement potential. Overall, the article is a solid piece of reporting on a significant and ongoing economic issue.
RATING DETAILS
The story accurately reports Federal Reserve Chair Jerome Powell's remarks about the economic impact of President Trump's tariffs and the Fed's stance on interest rates. Powell's acknowledgment of the tariffs' potential to increase inflation and slow down economic growth is consistent with his public statements. The article correctly notes that Powell emphasized the uncertainty of the economic outlook and the Fed's cautious approach to policy changes. However, the story could benefit from more specific details about the tariffs, such as the exact rates and affected countries, to enhance precision. The article's claims about market reactions and economic indicators are generally accurate but would be strengthened by direct references to specific data or sources.
The article presents both Powell's and Trump's perspectives, providing a balanced view of the ongoing tensions between the Federal Reserve and the White House. It includes Trump's criticism of Powell and his call for interest rate cuts, juxtaposed with Powell's cautious approach to monetary policy. However, the article could improve by incorporating more viewpoints, such as those from independent economists or market analysts, to provide a broader perspective on the potential economic impacts of the tariffs and the Fed's policy decisions.
The article is well-structured and presents information logically, making it easy for readers to follow the narrative. It clearly distinguishes between Powell's and Trump's positions, providing a coherent account of the situation. The language is straightforward and neutral, which aids in understanding the complex economic issues discussed. However, the article could benefit from more detailed explanations of technical terms, such as 'inflation expectations' and 'monetary policy,' to ensure comprehension by a broader audience.
The article relies on statements from Federal Reserve Chair Jerome Powell and President Trump, both authoritative figures in this context. While these sources are credible, the article lacks citations from independent experts or additional data sources that could enhance its reliability. Including insights from economists or financial analysts would provide a more comprehensive understanding of the situation and mitigate potential biases inherent in relying solely on official statements.
The article provides a clear account of Powell's remarks and Trump's responses, but it lacks detailed context about the methodology behind the claims, such as the specific economic data or analysis supporting Powell's statements on inflation and growth. Additionally, the article does not disclose any potential conflicts of interest or biases that might affect its reporting. Greater transparency about the sources of economic forecasts and the potential implications of the tariffs would enhance the article's credibility.
Sources
- https://abcnews.go.com/Business/fed-chair-powell-expects-trumps-tariffs-hike-inflation/story?id=120489662
- https://bsky.app/profile/did:plc:tevxdyd47reyzmtniligy3gl
- https://www.politico.com/news/2025/04/04/fed-powell-tariffs-trump-trade-economy-inflation-00272102
- https://www.pbs.org/newshour/politics/watch-live-fed-chair-powell-delivers-remarks-as-global-markets-roiled-by-trump-tariffs
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