Fed Chair Smacks Down Trump at Live Presser
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What did Jerome Powell reveal about the economy in his opening press conference?
The chairman of the Federal Reserve, Jerome Powell, just delivered the cold hard facts in a press conference. Donald Trump is destroying our economy, and all of the forecasts for growth now have to be pulled back. Here's what we're learning: a major stagflation warning by the chairman of the Federal Reserve, Jerome Powell, moments ago. The Fed now Predicts a brutal mix for 2025 of the following. Inflation up to 3%, growth down to 1.4%, unemployment up to 4.5%. They're holding interest rates steady for now, no drop in the interest rates. They still expect two cuts this year, but we were expecting much more cuts. Earlier cuts had Donald Trump just done nothing and allowed former President Biden's economy to basically be on autopilot.
Moments ago, here's what the chairman of the Federal Reserve, Jerome Powell, had to say about Donald Trump's disastrous tariffs. Play this clip.
Changes to trade, immigration, fiscal, and regulatory policies continue to evolve, and their effects on the economy remain uncertain. The effects of tariffs will depend, among other things, on their ultimate level. Expectations of that level and thus of the related economic effects reached a peak in April and have since declined. Even so, increases in tariffs this year are likely to push up prices and weigh on economic activity. The effects on inflation could be short lived, reflecting a one time shift in the price level. It's also possible that the inflationary effects could instead be more persistent. Avoiding that outcome will depend on the size of the tariff effects, on how long it takes for them to pass through fully into prices, and ultimately on keeping longer term inflation expectations well anchored.
In this next clip, Jerome Powell talks about what we see happening with unemployment data and inflation. And Jerome Powell is just a data guy, not a political guy. Here's what we're seeing as a result of Trump's failed policies. Let's play it.
uh at this meeting. So uh and those things are probably slow moving. So I think I think if you look at what's happening here, since March, this is since March, right? You see a little slower growth, just a tiny tick up, a one tenth tick up in in uh in unemployment, and you see inflation moving up three tenths. And by the way, it was it was a similar move from the December m uh SEP to the fifth March. So that's what you see. You see the the the the effects of Tariffs. I think we learned in April after the March meeting that substantially higher tariffs were likely. And then since then, the estimates of where the tariffs will be have actually moved back down, although still at an elevated level. So we're adapting in real time.
And uh what you see is an you know a cu an accumulation of individual assessments.
Jerome Powell then talks about the business surveys that the Fed has been reviewing. And what they see is how the tariffs are now working their way into prices being passed on to consumers. Let's play it.
In addition, we look at surveys of businesses and uh there there are many of those and and you you do see a range of things, uh but but many, many companies do expect to uh to to put all or s or some or all of the effective tariffs through to the next in next person in the in the chain and ultimately to the consumer. Today, uh you know, the amount of these the the amount of the tariff effects, the size of the tariff effects, uh their duration and the time it will take are all highly uncertain. So that that is why we think uh the appropriate thing to do is to hold where we are as we learn more, and we think our policy stance is is in a good place where we're well positioned to react to incoming developments.
A reporter then asks Jerome Powell about all of Donald Trump's attacks on Jerome Powell and the Federal Reserve in general, including attacks earlier in the day. Watch this exchange right here.
Mr. McKee.
Michael McKee from Bloomberg Radio and Television. Um your friend down at sixteen hundred Pennsylvania Avenue continues to lob insults in your direction.
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