The Federal Reserve's Powell called for "no rush to cut interest rates," stating that the U.S. economy is still strong; Trump responded: the actions are too slow.

As Trump pushes for reciprocal tariff policies, Federal Reserve Chairman Jerome Powell rarely warns that inflation may be a "non-ephemeral phenomenon", and said that the economic outlook is extremely uncertain, and he needs to wait patiently for more data, and will not act rashly, slapping in the face of Trump's proposition that he "cut interest rates quickly". (Synopsis: U.S. stocks plunged and nearly meltdown!) Non-farm payrolls surged by 228,000 people more than expected, and bitcoin rose above 84,000 magnesium into a safe haven for funds? (Background addition: US non-farm payrolls data is coming tonight!) Analysis: Bitcoin is severely oversold, labor market is weak or cryptocurrencies rebound) U.S.-China trade tensions are heating up, and Fed Chairman Jerome Powell's latest speech has shocked the market. In the face of the Trump administration's largest tariff action in 200 years, Powell rarely stressed that inflation risks are "not transient" and warned that the economic outlook is "extremely uncertain", and the Fed will pause and wait patiently for more data. This move not only reflects the shift of monetary policy to the sidelines, but also casts uncertainties in global asset markets. Warning of inflation risks may become the norm Bauer told the annual meeting of the American Association of Business Editors and Writers that a new round of tariffs will sharply raise import costs and push up consumer prices, which may turn into "persistent inflation." Although the Fed's previous assessment of the effect of tariffs was biased towards "temporary shocks", Bauer's shift to attitude this time is seen as a major redefinition of inflation risk. "Tariffs are highly likely to trigger at least a temporary rise in inflation, but these effects are also likely to be long-lasting," he noted. According to Bloomberg economists, this wave of tax hikes announced by Trump and effective in April has raised the average effective tariff rate in the United States from 2.3% to 22%, even surpassing the Smoot-Hawley Tariff Act of 1930. JPMorgan predicts that this move will increase the probability of a global recession to 60%, and many institutions also believe that prices may rise a lot this year, especially in automotive products. Will wait patiently for more data Bauer pointed out that the biggest challenge facing the Fed right now is to strike a balance between curbing inflation and maintaining employment. The upward price and consumption pressures caused by tariffs have made these two goals potentially conflicting, making decision-making much more difficult. Market analysis warns that without other policy combinations, it is possible to repeat the "stagnant inflation" scenario of the 1970s, in which economic stagnation, soaring prices and worsening unemployment coincide. However, Powell still believes that the US economy is "in good shape overall" and has not seen a real deterioration despite heightened uncertainty about the outlook. In the face of market expectations that as many as four interest rate cuts may be made this year, Powell stressed that "it still needs time to see" whether the Fed will hastily adjust policy until the specific impact of policy on inflation and economic growth is not clear. He said: "We will remain patient and wait for more clear data before considering whether to adjust monetary policy." This statement also shows that the Fed tends to maintain a wait-and-see stance in the short term, further deepening the market's attention to the timing of the policy turning point. It is worth noting that before Ball made a public statement, Trump issued an article on Truth Social to "name and pressure", asking Ball to "cut interest rates quickly and stop engaging in politics", and stressed that energy and food prices have fallen significantly, and the employment data is strong, which is "the perfect time to cut interest rates." Now is the perfect time for Fed Chairman Jerome Powell to cut rates. He is always "one step slower", but he can now change his image, and quickly. Energy prices are down, interest rates are down, inflation is down, even egg prices are down 69 percent, and employment is up in the last two months — a huge win for the United States. Cut interest rates, Jerome, and stop playing politics! Trump advocates reviving the economy through interest rate cuts and tariffs, but Bauer believes that inflation expectations still have upside risks and need to be carefully assessed. The exchange of rhetoric underscores a fundamental disagreement between the two men on economic risks and puts the Fed under pressure for political intervention in monetary policy. Fore's preferred recession predictors — the spread between three-month and eighteen-month forward U.S. Treasury yields — fell to -113 basis points this week, the lowest since October 2024, and the biggest one-day deterioration since 2008, Reuters reported. This indicator reflects the gap between short-term interest rates and market expectations for future interest rates, which usually narrow quickly and turn negative as a recession approaches. Since March 2022, when the Fed launched its rate hike cycle, the indicator has been in negative territory for a long time, as yields on short-term Treasury bonds remain high. Jordan Rochester, head of strategy at Mizuho, said: "Historically, the Fed has often entered recessions within 3 to 18 months of its last rate hike. Now that 21 months have passed, the market has to start to see if a recession is approaching." With the risk of "stagflation + recession" rising, market sentiment has taken a sharp turn. The Dow plunged more than 2,000 points, the Fee Half Index tumbled 7%, U.S. Treasury yields fell below 4%, and crude oil prices fell to four-year lows on falling demand expectations. Extended reading: U.S. stocks plunge near circuit breaker! Non-farm payrolls surged by 228,000 people more than expected, and bitcoin rose above 84,000 magnesium into a safe haven for funds? Related reports Bloomberg scolds Trump tariffs for "flouting market wisdom": mistakes are paid by the United States, and the door to the worst world has been opened Trump tariffs hit bitcoin mining companies: new imports of ASIC mining rigs will rise 5 to 10 times, and concept stocks all plummet JPMorgan Chase warned of "Trump tariff risk": the probability of global recession increases to 60%, and US inflation will get out of control 〈Federal Reserve Powell shouts "no urgent interest rate cut", the US economy is still strong; Trump responded: The action is too slow" This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Blockchain News Media".