When will the Federal Reserve cut interest rates? Powell: When the Federal Reserve is confident that inflation is decreasing.

Federal Reserve Chairman Powell said that before starting to lower interest rates, they need to have confidence that inflation is actually decreasing. Powell said: "There is a lot of uncertainty in this regard, especially considering tariff policies, so what we need is confidence that inflation is decreasing." He mentioned that someone will have to pay for the tariffs between manufacturers, exporters, retailers, and consumers. Powell said: "Ultimately consumers will bear some of the responsibility, we just want to see some results before making any premature judgments." Powell also stated that without tariffs, inflation in the service sector would "decrease nicely," but the Federal Reserve needs to learn more about the impact of tariffs.