Powell Urges Patience as Markets Reel, Trump Calls for Rate Cut

As global markets continue to stumble in the wake of President Trump’s sweeping tariff hike, Federal Reserve Chair Jerome Powell delivered a steady message Friday: the central bank isn’t rushing to intervene.

Speaking at the Society for Advancing Business Editing and Writing’s annual conference, Powell emphasized the Fed’s commitment to data-driven decision-making, noting it’s “too soon to say” whether any change to policy is warranted. “We are well positioned to wait for greater clarity before considering any adjustments,” he added.

Powell acknowledged the newly announced tariffs were “significantly larger” than anticipated, raising the risk of a short-term jump in inflation. However, he reiterated the Fed’s focus on preventing any temporary shock from morphing into a lasting trend.

Markets, already in a state of heightened anxiety, took the speech as a signal that a rate cut isn’t coming just yet. Bitcoin, which had been climbing ahead of Powell’s remarks, reversed course and fell back below $83,000. Stocks continued their slide, with the Nasdaq shedding another 4.2%, extending Thursday’s steep losses.

Trump Turns Up the Heat

In a familiar move, President Trump weighed in shortly before Powell’s speech, calling for immediate action from the Fed.

“This would be the perfect time for Fed Chairman Jerome Powell to cut interest rates,” Trump wrote on Truth Social. “He is always ‘late,’ but he could now change his image, and quickly … Cut interest rates, Jerome, and stop playing politics.”

Despite the mounting pressure, Powell gave no indication of an imminent pivot, reaffirming the Fed’s focus on long-term stability rather than short-term volatility.