Jerome Powell Signals No Plans to Loosen Policy as Fed Maintains Inflation Focus

Key Takeaways:

• Federal Reserve Chair Jerome Powell reaffirmed the central bank’s commitment to controlling inflation, even as markets reeled in response to the president’s new tariff measures.

• Powell noted that the Fed is in a strong position to hold steady before making any policy changes.

• U.S. equities are falling for a second straight day, while bitcoin appears to be starting to move independently of traditional markets.

Investors looking for a significant shift toward looser monetary policy from the Federal Reserve in the wake of the president’s tariff announcement on Wednesday—and the resulting two-day stock market slide—will need to remain patient.

“We’re in a good position to wait for more clarity before making any changes to our policy approach,” said Fed Chair Jerome Powell in prepared remarks at the Society for Advancing Business Editing and Writing Annual Conference. “It’s still too early to determine the right course for monetary policy.”

Acknowledging that the newly announced tariffs were “significantly larger” than anticipated, Powell emphasized that the Fed’s role is to ensure any short-term spike in inflation doesn’t become long-lasting.

Bitcoin (BTC) saw a slight uptick ahead of Powell’s remarks—perhaps on hopes of a more dovish tone—but has since dipped back below $83,000, roughly unchanged from a day earlier. Despite the pullback, the cryptocurrency is holding up far better than equities, with the Nasdaq now down 4.2% after a 6% drop the previous day.

President Trump Weighs In

Just moments before Powell's speech, President Trump took to Truth Social to publicly pressure the Fed chair.

"This would be the perfect time for Fed Chairman Jerome Powell to cut interest rates," Trump posted. "He is always 'late,' but he could now change his image, and quickly ... Cut interest rates, Jerome, and stop playing politics."