Powell Reiterates Desire to Hold Rates

11 snips

Jun 24, 2025

Dina Esfandiary, a Bloomberg News Middle East geoeconomics reporter, shares insights into the cautious approach of the Federal Reserve regarding interest rates. She discusses Powell's reluctance to make quick changes, emphasizing the need for clarity on tariffs and inflation. The conversation shifts to the declining oil prices influenced by geopolitical tensions and China's market strategies. Esfandiary also highlights the intersection of energy market dynamics, autonomous vehicle innovations, and the evolving geopolitical landscape in the Gulf.

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INSIGHT

Powell's Cautious Rate Approach

Fed Chair Jerome Powell emphasized a cautious approach to interest rate changes amid economic strength.
He highlighted the need to wait for more data especially on tariffs before adjusting policy.

INSIGHT

Oil Price Dynamics Amid Tensions

Oil prices dropped despite Middle East tensions due to supply outpacing demand.
China's stockpiles and refinery capabilities mitigate potential supply shocks from the region.

INSIGHT

Fed's Oil Price Inflation View

Fed avoids reacting hastily to oil price increases to prevent inflation traps from the 1970s.
Energy efficiency and gradual spillover effects reduce the immediate inflation threat from oil.

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Federal Reserve Chair Jerome Powell had plenty of opportunities Tuesday to tell lawmakers definitively the central bank will cut interest rates soon. He didn’t take any of them.

Instead, Powell reiterated his view that policymakers need not rush to adjust policy, a counter to President Donald Trump’s demands and recent statements from Fed Governors Christopher Waller and Michelle Bowman that signaled the two would be open to lowering rates as soon as July.
“If it turns out that inflation pressures do remain contained, then we will get to a place where we cut rates, sooner rather than later,” Powell said in response to a question about the possibility of a rate cut next month during a House Financial Services Committee hearing. “But I wouldn’t want to point to a particular meeting. I don’t think we need to be in any rush because the economy is still strong.”
Powell’s remarks before the congressional panel came on the heels of the Fed’s decision last week to leave interest rates unchanged in a range of 4.25%-4.5%. He has maintained policymakers should take a cautious approach to rate cuts as they wait for more clarity on the impacts of Trump’s economic policies, particularly on tariffs.

“The effects of tariffs will depend, among other things, on their ultimate level,” Powell said. “For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance.”
Today's show features:

Michael McKee, Bloomberg International Economics and Policy Correspondent and Alix Steel, Bloomberg Radio and TV host, on Powell testimony and global oil markets
Bloomberg Middle East Geoeconomics Reporter Dina Esfandiary on latest in the Middle East
Craig Trudell, Bloomberg Global Autos Editor & Bloomberg Businessweek Senior Reporter Max Chafkin on boom in driverless cars
Katie Hubbard, EVP of Capital Markets for Walton Global

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