Federal Reserve Chair Jerome Powell said the central bank is focused on full employment and price stability|@federalreserve|X

Federal Reserve Chair Jerome Powell said on Tuesday that the central bank would have likely cut interest rates by now if not for President Donald Trump’s tariffs, which raised inflation forecasts and forced the Fed to pause.

Speaking at the ECB forum in Portugal, Powell emphasized the Fed’s independence despite Trump’s repeated attacks, including calling the Fed Chair a “moron.”

Powell said he and his colleagues are focused on full employment and price stability. He declined to comment on a July rate cut, saying it depends on data. 

ECB President Christine Lagarde and other central bank leaders backed Powell’s stance, applauding his commitment to resist political pressure.