Fed in no rush to cut rates, Trump disagrees

The Trump administration's initial policies, including extensive import tariffs, appear to have tilted the US economy toward slower growth and at least temporarily higher inflation, Federal Reserve Chair Jerome Powell said on Wednesday, drawing the ire of President Donald Trump.

- Howard Schneider & Ann Saphir

Trump posted late on Wednesday on his Truth Social platform: "The Fed would be MUCH better off CUTTING RATES as U.S. Tariffs start to transition (ease!) their way into the economy. Do the right thing."

Earlier, in explaining why rates were being kept unchanged, Powell described the uncertainty faced by Fed policymakers as "unusually elevated."

With overall sentiment sliding due to policy "turmoil," prices are projected to rise faster than previously expected at least in part, and perhaps largely, because of Trump's plans to impose duties on imports from U.S. trading partners, Powell said after the Fed announced it had held its benchmark overnight rate steady in the 4.25%-4.50% range.