#PowellRemarks part of Trump’s decisions, the total tariff rate on China will rise to 54%, while the European Union will face a 20% rate, Japan 24%, India 26%, South Korea 25%, Taiwan 32%, Thailand 36%, and Vietnam 46%. In retaliation, China announced it would impose an additional 34% tax on goods imported from the U.S. As the global trade war escalates, markets are growing increasingly uneasy.

Powell stated that these developments have increased uncertainty in financial markets and created a complex picture for Fed monetary policy. “If the economy slows down, a rate cut may be considered, but rising prices make this decision more difficult,” he said.

Trump, on the same day, took to the social media platform Truth Social and directly addressed Powell, saying, “Now is the perfect time to cut rates. Don’t be late!” continuing to apply pressure.