Federal Reserve Chairman Powell hopes to lower interest rates in the United States

Jerome Powell, head of the U.S. Central Bank, raised expectations for a cut in September, and President Trump has been demanding for a move for months.

The central bank’s speech to central bankers in Jackson Hole, Wyoming, also argued that the inflationary impact of Trump’s tariffs could be temporary.

But, as some have expected, he has not addressed other challenges he has faced in recent months: political pressure exerted by the U.S. central bank, Trump’s call of name and demands that Powell cancel from his post.

The shift to a more “dirty” stance shows that it reduces the cost of borrowing and makes the stock price higher.

Economists and investors have already expected lending rates to drop to 4.5% from the current 4.25%. These expectations have been further raised by recent weaknesses in the U.S. job market, but the impact on Trump’s massive tariff prices has raised questions.

“In the short term, the risk of inflation is tilted to the upside space and there is a risk of obstacles – it’s a challenging situation,” Powell said.

If central banks have slowed down economically and signs of a decline in employment, interest rates will usually be lowered to increase growth, as this makes borrowing for consumers and businesses cheaper.

However, increasing growth must be balanced with checks on price increases. Higher interest rates can help control inflation, which is often seen as a major priority for central banks.

Powell said the impact of tariffs on consumer prices is now “clearly visible”, but said there is a “reasonable” case where inflation will “a relatively short life-a one-time shift in price levels.”

He said he downplayed the possibility of inflation due to increased wage demand or higher inflation expected, so the time it took to move prices would take.

Since interest rates are already “on restrictive territory” – high enough to cause depression on economic activity, Powell suggested that “the transfer balance of risk may require adjustments to our policy stance.”

The only time Powell mentioned the extra pressure exerted by President Trump was, he warned that assuming the September tax reduction was set on the stone.

“Monetary policy is not in the preset course”, he said.

Members of the Policy Development Committee will “based on their assessment of the data and its impact on the economic outlook and risk balance only.

“We will never deviate from this approach,” he said.

Friday’s speech may be Powell’s Jackson Hole address at the end of May 2026.

He was appointed chairman of the Federal Reserve by Trump in 2017.

However, since then, Trump has expressed growing hatred, personal insults to the central bank, including calling him a “numb” and a “stubborn idiot” because he does not support the president’s call for quick, drastic cuts to borrow rates.

Trump also publicly put forward the idea of ​​early withdrawal of Powell from his post, although it is not clear that he has legal authority to do so.

Investors welcomed the speech, increasing the main U.S. share within minutes of his start.

“Powell opened a little on the September tax rate,” said Diane Swonk, chief economist at KPMG US.

Brian Jacobsen, chief economist for Attachment Wealth Management, said the Fed chose not to participate in “partisanship”.

“Chairman Powell shows that he has an open attitude towards reading data tea.

“The downside risks in the labor market have risen, and while they are still concerned about inflation expectations, they will not prioritize unknown inflation expectations risks over known growth risks,” he wrote in an email.