Federal Reserve would pursue a more relaxed monetary policy if there was no President Donald Trump’s duty plan. US Federal Bank President Jerome Powell

Asked during the forum of the European Central Bank organized in Sintra, Portugal, if the Fed would have further reduced interest rates if Trump had not announced his controversial plan to impose duties on the US trade partners, “I said.”

“In fact, we decided to pause when we saw the size of the duties and that virtually all the provisions on inflation in the United States increased significantly as a result of duties,” Powell added.

The head of the US Federal Bank has made the assumption despite increasing pressure from the White House.

The Fed maintained the main borrowing rate again last month again, in the range of 4.25% -4.50% since December.

The Fed Federal Committee (FOMC) also indicated that there could be two reductions by the end of 2025. However, Powell said during the press conference that the Fed is “in good position” to keep the standby.

When he was not asked if it would be too early in July for a reduction in interest rates, Powell stressed that “he couldn’t really say confidently” and that “it will depend on the data”.

The waiting attitude of the Fed has caused the wrath of Trump and his government, who have publicly reprimanded Powell to reluctantly reduce interest rates. Trump Malita last week called Powell “awful” and said he was a “very mediocre person”.