MNI BRIEF: Powell Patient On Rates As Tariff Impact Emerges

Federal Reserve Chair Jerome Powell said Tuesday officials have been holding rates so they can understand the impact of tariffs on inflation and the broader economy, and reiterated that a "solid majority" of FOMC members see it as appropriate to resume cutting later this year.

"The U.S. economy is in a pretty good position," Powell said during a panel discussion at the ECB's Sintra conference, citing low unemployment and progress slowing inflation. 

“In effect we went on hold when we saw the size of the tariffs,” he said. The effect of tariffs hasn't shown up much in the economy yet and the timing of the changes are something “we’re prepared to learn” over time. (See: MNI INTERVIEW: Fed To Cut Twice In 2025 On Weak Growth-Haslag) 

“We are going meeting by meeting” and making policy decisions based on incoming inflation and job data, Powell said.