"The Federal Reserve's Megaphone": The Federal Reserve pauses interest rate cuts, diverging from other major Central Bank policies

According to a report by Jin10 on May 8, Nick Timiraos, the "mouthpiece of the Federal Reserve (FED)," stated that Powell downplayed any speculation about the FED seeking to ease the economic weakness caused by Trump's tariffs through interest 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 reveals the monetary policy divergence between the United States and other economies caused by Trump's trade policies. The reason is simple: other economies have not imposed significant tariffs on imported goods and face the issue of softening demand and employment, but do not have the inflationary pressures that the FED may have to deal with later this year. Furthermore, as the U.S. economy has just gone through a period of high inflation, the FED believes it cannot risk preemptively cutting interest rates to support the slowing job market, lest it exacerbates price pressures in the short term. As a result, the FED's stance is different from that of the European, Canadian, and British Central Banks. Powell hinted that the FED would only cut rates if there is clear evidence of a significant slowdown in economic growth, and it might be a rapid cut.