‘The Big Money Show Panel discussed Fed’s decision to cut high-stake rate, the impact with President Donald Trump’s new Fed pick, record gold prices, and what will Powells be more cut.
federal Reserve On Wednesday, the first interest rate cut of the year announced as the policy makers reduced their benchmark interest rate by 25 basis points, as the signs of a weak labor force increased the high inflation.
Following the Central Bank’s decision to cut rates for the first time since December 2024, the Federal Fund will sit on a new range of 4% to 4.25%. Amidst economic uncertainty, Fed cut off the unchanged rates in its first five meetings after unchanged.
Policy makers have been monitored Economic data Which has shown recession in hiring businesses with changes in trade and immigration policy, while inflation has been elevated and trended through inflation figures in recent months as tariff-related price increase.
That dynamic has presented a challenge to policy makers in achieving both the targets of the double mandate of the Fed to promote maximum employment and stable prices to suit the 2% inflation target of the Fed.
The Federal Open Market Committee (FOMC), which guides the monetary policy moves of the Central Bank, mentioned in its announcement that the benefits in the job have slowed down and the unemployment rate has increased, but relatively low remains, while inflation has increased and is somewhat high. The FOMC stated that under the supervision of both sides of the double mandate that “negative risks for employment have increased.”
Inflation has increased in August because Fed Fed Fed Rate Cuts
Federal Reserve President Jerome Powell opened the door to cut a rate in a speech at Fed’s annual Jackson Hole Conference. (Chip Somodeville / Getty Image / Getty Image)
Only one policy-maker, newly married Fed Governor Jeffrey Miran separated from 11–1 votes of FOMC. In this meeting, Miran, who preferred the 50-basis-point cut, replaced the former Fed Governor Adriana Kugler in August.
Federal reserve chair Zerome poly It was already said that if inflation and surrounding indicators around the labor market are moving away from those goals, the policy maker will focus on addressing what is ahead of the target.
Powell launched its press conference, stating that Fed focuses on both its double mandate goals and noted that recent economic development has suggested recession in development.
“Overall, the slow is unnatural marked in both the supply and demand of the workers. This low dynamic and somewhat soft labor market, negative risk for employment has increased,” Powell said. “In the mid -2022 inflation has reduced its height significantly, but our 2% is somewhat high relative to long -lasting targets.”
Powell said that the fed would ensure that tariff-inspired inflation does not become a persistent problem. (Kent Nishimura / Getty Image / Getty Image)
Powell repeated that Tariff-inspired price increase The price level may represent a one -time innings, but may represent a more frequent inflation challenge. He explained that the fed “obligation is to ensure that a one -time increase in the price level does not cause a constant inflation problem.”
“We have started showing the prices of goods through high inflation and actually for most increase in inflation to increase the prices of goods or perhaps for all of inflation increase during this year. They do not have great effects on this point, and we hope that they will continue to build on this year and next year’s course.”
Powell said that Fed believes that the top -side trend in inflation will increase the price of one time, but said that the central bank cannot take it as it weighs monetary policy.
“We can’t just assume that,” he said. “Our job is literally to ensure that this happens, and we will do that work.”
Senate confirmed Stephen Miran to Fed Board by cutting significant rates
Powell was asked about the signal Tariff due to inflation And note that the inflation of the goods was negative last year, but is 1.2% above the previous year, even after adjusting to the quality of the products, the prices of goods fell 25 years ago even before the epidemic.
He said that the current core of tariff 2.9%is contributing some like 0.3 or 0.4 percentage points to read PCE inflation.
“It seems that the tariffs are not being paid by most exporters,” Powell said. “Among all those companies and institutions, they will tell you that they have every intention to pass through time, but they are no longer doing so. Consumer, The pass-the-three has been very slow, it is slow and small as we thought. But the evidence is clear that there is some pass-through. ,
Fed Chair was asked about the independence of the central bank, given to the President Donald Trump’s Efforts to influence the central bank’s decision, and how the public can be assured that its monetary policy moves are based on economic situations rather than political views.
Powell said that it “has to do its work based on the data coming deeply in our culture and never has anything else,” saying that “the way you talk to it from the speeches you give, the people who give it, they will know what we do.”
He said, “We do not frame these questions at all, or see them in terms of political results. I think everything is seen through the lens of this political party when you go to another part of Washington.” “I think it is difficult for people to believe that it is just the way we think about things in the fed. We are taking a long perspective, we are trying to serve American people we can.”
American job growth through march is reduced by 911K
Fox Business ‘Edward Lawrence asked Powell about the Bureau of Labor Statistics,’ Early benchmark amendment, showing that the labor market added 911,000 less jobs compared to the report in the period from April 2024 to March 2025 and how the Fed base decisions on such data.
Powell said it was surprising how close the hope was, and the reason for the final group of quarters was for the last group, and I think the Bureau of Labor Statistics really understands it, and they are working hard to fix it. ,
Lawrence asked if it would be replaced by the previous decisions of the Fed, which has changed to leave the rates unchanged, and Powell replied, “We have to live a life to see through the windshield instead of the rearview mirror, as you know. And I can tell you that we can see where we are now, and we take appropriate action, and today it was taken.”
World leader warns Trump on Fed Independence
Fed Governor Lisa Cook attended the meeting after an appellate court upheld a lower court, temporarily blocked Trump’s attempt to set him on fire. (Through Saul Loaib / AFP Getty Image / Getty Image)
Fed has pressurized the Trump administration to cut interest rates, the President has repeatedly threatened Powell – although he has supported those dangers with the tenure of the chair due to ending in May 2026.
Powell was asked if he plans to leave the Fed after his tenure as a chair ends rather than remaining as a fed governor, as the term lasts until 2028, although he refused to comment.
Trump Fed is also trying to fire the governor Lisa Cook On allegations of hostage fraud, although a district court ruled that the firing was temporarily blocked, retained by an appellate court and allowed to attend the FOMC meeting of this week.
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Cook has not been accused of any offense related to the allegations, which were picked up by Trump Elie and FHFA Director Bill Pulte. Pavel refused to comment on the case associated with Trump’s attempt to cook.
