BlockBeats News, May 8th, in the "Fed's Transmitter" Nick Timiraos stated that Powell played down any speculation that the Fed is seeking to ease the economic softness caused by Trump's tariffs through rate cuts. Powell mentioned the word "wait" 22 times during the press conference to emphasize that the Fed is not in a hurry to act.

This statement exposes the monetary policy divergence between the United States and other economies due to Trump's trade policies. The reason is simple: other economies have not significantly raised tariffs on imported goods. They are facing issues of weakening demand and employment without the potential impact of inflation that the Fed may have to deal with later this year.

Furthermore, since the U.S. economy has just experienced a period of high inflation, the Fed believes it cannot risk proactively cutting rates to support the slowing job growth, for fear of intensifying price pressures in the short term. As a result, the Fed's stance differs from that of the European, Canadian, and British central banks. Powell suggested that the Fed would only cut rates after seeing substantial evidence of a significant economic slowdown, and it could be a rapid rate cut. (Jinshi)