US Federal Reserve Chair Jerome Powell used the ECB’s Sintra summit to repeat a simple message: the Fed will not cut rates until it knows how Washington’s tariff policy is feeding into prices.
“We’re simply taking some time,” he told the panel, one day after President Donald Trump handed him a handwritten plea for “immediate and deep” easing.
Powell said officials still pencil in a cut later this year, yet “none of the remaining four meetings is off the table.” The next decision comes July 29–30.
The central bank held its benchmark rate at 4.25% to 4.5% following its June meeting, with Powell defending the cautious approach during congressional testimony Tuesday despite escalating criticism from Trump.
“We [the Federal Reserve] aren’t commenting on tariffs,” Powell said in his House Financial Services Committee appearance. “Our job is keeping inflation under control, and when policies have short- and medium-term, meaningful implications, then inflation becomes our job.”
“It’s going to depend on the data,” Powell stressed. “We are going meeting by meeting.”
Meanwhile, ECB President Christine Lagarde declared victory on prices—euro-area headline inflation has slipped to the 2% goal, even as services inflation lingers nearer 3%.

The stronger euro—up 14% against the dollar this year—now troubles several ECB governors. Vice President Luis de Guindos warned that a break above $1.20 could force fresh rate cuts to keep inflation from undershooting, while Latvia’s Martins Kazaks said any “significant” appreciation would tilt the balance toward added easing.
For Powell, that currency dynamic is one more reason to wait as moving first risks widening the yield gap, weakening the dollar, and muddying tariff-related price signals.
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