"The Fed's Listening Device": Why is the Fed not in a hurry to join the central bank team in cutting interest rates?

"Federal Reserve megaphone" Nick Timiraos said that Powell played down any speculation that the Fed was seeking to alleviate economic weakness caused by Trump's tariffs through rate cuts. Powell mentioned the word "patience" 22 times during the press conference to emphasize that the Fed is not in a hurry to act. This statement exposes the differences in monetary policy between the U.S. and other economies due to Trump's trade policies, as other economies have not significantly raised tariffs on imports and are facing issues with softening demand and employment, but not the potential inflationary pressure that the Fed may have to deal with later in the year. Additionally, because the U.S. economy has just experienced a period of high inflation, the Fed believes it cannot risk preemptively cutting rates to support slowing employment, as this could exacerbate price pressures in the short term. The result is that the Fed's stance differs from that of the European, Canadian, and British central banks. Powell hinted that the Fed will only cut rates when there is evidence of a significant slowdown in economic growth, and it could be a rapid cut.