TechFlow, May 8 — According to Jinshi Data, "Fed whisperer" Nick Timiraos reported that Powell downplayed speculation that the Fed would cut rates to cushion economic weakness caused by Trump's tariffs. Powell mentioned the word "wait" 22 times during the press conference to emphasize the Fed's reluctance to act quickly. These comments highlight a growing divergence in monetary policy between the U.S. and other economies, simply because other countries have not significantly raised import taxes and are instead grappling with weakening demand and employment—without facing the same inflationary pressures the Fed may confront later this year. Moreover, since the U.S. economy has just emerged from a period of high inflation, the Fed believes it cannot risk preemptively cutting rates to support slowing employment, as that could exacerbate price pressures in the short term. As a result, the Fed's stance differs from those of the European Central Bank, the Bank of Canada, and the Bank of England. Powell suggested the Fed would only cut rates after seeing clear evidence of a significant slowdown in economic growth—and possibly do so rapidly.
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