On May 7, 2025, US Federal Reserve Chairman Jerome Powell addressed recent criticisms from President Donald Trump regarding his leadership at the Fed. During a press briefing, Powell emphasized that external opinions do not influence his responsibilities. He reaffirmed his commitment to using the Fed’s monetary tools to enhance economic stability and employment, focusing on the welfare of the American populace.

Powell Stays Committed to Economic Stability

In response to Trump’s remarks, Powell asserted, “External opinions do not affect our job. We will continue to utilize our tools to promote maximum employment and price stability for the benefit of the American people.” This statement underscores Powell’s dedication to maintaining a steady course in the face of political pressure.

Focus on Economic Data Over Political Influence

Powell further clarified that decisions made by the Federal Reserve are strictly based on economic data rather than political sentiments. He stated, “Our focus remains solely on economic indicators, the outlook, and the balance of risks. This ensures that our approach to monetary policy remains unaffected.” This commitment highlights the Fed’s priority on stabilizing the economy amidst fluctuating political landscapes.

The Current State of US Federal Reserve Policy

During the same briefing, the Federal Reserve announced it would maintain its key benchmark interest rates within the range of 4.25% to 4.50%. This decision comes amid ongoing economic uncertainties and inflation risks exacerbated by the ongoing trade war. Powell reiterated that, as of now, the economic climate does not warrant a rate cut.

• Key points from Powell’s address:
  • No immediate plans for interest rate adjustments
  • Emphasis on patience in monetary policy
  • Continuous monitoring of economic developments

Powell expressed confidence in the Fed’s current approach, stating, “We believe it is prudent to wait and observe how situations evolve. We are not in a rush to make changes but can act quickly when necessary.” This cautious optimism reflects the Fed’s careful navigation of the complex economic landscape.

As this story develops, keep an eye out for further updates on the Federal Reserve’s stance and actions.