On Tuesday, Federal Reserve (Fed) Chairman Jerome Powell emphasized the central bank's commitment to controlling inflation while expecting US policymakers to remain 'neutral' until they are truly confident in the economy in dealing with the effects of tariffs.
During his speech before Congress this week, Powell described economic growth as still strong and the employment sector at its maximum level.
However, inflation levels are still above the 2% target and the impact of Donald Trump's tariffs on global markets is still unclear.
He also stressed that his officials' decisions are in the right place and that they are further assessing economic trends before considering any adjustments to the current policy stance.
Powell's cautious tone is seen as potentially causing tension with President Donald Trump, who has become increasingly vocal in criticizing the Fed's leadership.
In the latest statement posted early Tuesday via the Truth Social platform, Trump expressed his hope that Congress will really deal with the 'stubborn' person, referring to Powell.
During his presentation, members repeatedly pressed Powell on the conditions for a rate cut.
However, he remained consistent in saying that the Fed needs more data throughout the summer to ensure that current price pressures do not turn into prolonged inflation.
