Powell: The Federal Reserve will lower interest rates when it is confident that inflation is declining.

[Powell: The Fed will cut interest rates when it is confident that inflation is falling] Fed Chairman Jerome Powell said that confidence that inflation is coming down is needed before starting to cut interest rates. “There’s a lot of uncertainty on this front, and given the tariff policy, what is needed is confidence that inflation is coming down,” Powell said. Between manufacturers, exporters, retailers and consumers, “someone has to pay for the tariffs,” he said. “The end consumer will take some of the blame, and we just want to see a little bit of the result before we make a judgment too soon,” Powell said. Powell said that without tariffs, services inflation would “come down nicely,” but the Fed needs to know more about tariffs.