Powell says Fed can wait to reduce interest rates as Trump demands cuts

WASHINGTON (AP) — The Federal Reserve will continue to wait and see how the economy evolves before deciding whether to reduce its key interest rate, Chair Jerome Powell said Tuesday, a stance directly at odds with President Donald Trump’s calls for immediate cuts.

“For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance,” Powell said in prepared remarks he will deliver early Tuesday before the House Financial Services Committee.

Powell is facing two days of what could be tough grilling on Capitol Hill, as Trump has repeatedly urged the Fed to reduce borrowing costs. Powell has often received a positive reception before House and Senate committees that oversee the Fed, or at least muted criticism. Powell has also often cited his support in Congress as a bulwark against Trump’s attacks, but that support could wane under the president’s ongoing assaults.

Trump lashed out again in the early hours of Tuesday morning, posting on his social media site: “I hope Congress really works this very dumb, hardheaded person, over. We will be paying for his incompetence for many years to come.”