Powell Urges Patience as Markets Reel From Trump Tariff Shock
Federal Reserve Chair Jerome Powell struck a cautious tone Friday as financial markets continued to reel from President Trump’s surprise tariff announcement earlier this week.
Speaking at the Society for Advancing Business Editing and Writing Annual Conference, Powell made it clear that the central bank is in no rush to respond with policy easing, despite mounting investor hopes for a rate cut in the face of market turmoil.
“We are well positioned to wait for greater clarity before considering any adjustments to our policy stance,” Powell said. “It is too soon to say what will be the appropriate path for monetary policy.”
The remarks came after a two-day bloodbath in equity markets, with the Nasdaq shedding over 10% combined across Wednesday and Thursday sessions. Powell acknowledged that the scale of the new tariffs was “significantly larger” than anticipated, but emphasized the Fed’s role in ensuring that any short-term inflationary pressure doesn’t spiral into something more lasting.
Bitcoin (BTC), which had bounced slightly ahead of Powell’s speech, pulled back below $83,000 following the remarks, leaving it roughly unchanged over the past 24 hours. Still, the cryptocurrency has held up far better than equities — the Nasdaq is down another 4.2% Friday after a 6% drop the previous day.
Trump Turns Up the Heat
Just minutes before Powell took the stage, President Trump publicly pressured the Fed via Truth Social, calling on Powell to act immediately.
“This would be the perfect time for Fed Chairman Jerome Powell to cut interest rates,” Trump posted. “He is always ‘late,’ but he could now change his image, and quickly … Cut interest rates, Jerome, and stop playing politics.”
While the Fed chair didn’t directly address Trump’s comments, his message was clear: the central bank will move on its own terms, guided by data — not political pressure.
