Federal Reserve Chair Jerome Powell said the bank wouldve cut interest rates if it werent for President Trumps tariff plans.

In response to a question at the European Central Bank Forum in Portugal, he said the Fed paused its moves on interest rates when it saw the size of the tariffs, with inflation forecasts rising after their announcement.

The Fed has maintained interest rates unchanged below 4.5% despite mounting pressures from the White House.

The Fed expects two interest rate cuts by the end of 2025, with Powell even opening the door for a July rate cut based on the data.

The markets expect a 76% chance of no changes in interest rates in July.

Trump has continued to attack Powell heavily due to his stance on interest rates, and publicly announcing plans to replace him soon.

Powells Fed Chair term ends in 2026, while his term as member of the Fed ends in 2028.

Trumps recent attacks on Powell raised concerns worldwide about US monetary independence, while his erratic tariff policies continue to cause jitters in global markets.

Even as the SP 500 regained its losses and reached record highs, investors remained on edge about the future of global trade and growth due to tariff concerns.