Fed Chair Powell warns Congress that Trump tariffs will cause persistent inflation

Federal Reserve Chair Jerome Powell testified before Congress on June 25, 2025, warning that President Trump's tariff policies would cause inflation to remain elevated above the Fed's 2% target for an extended period. Powell said the Fed would not lower interest rates until inflation receded, regardless of presidential pressure. Trump had repeatedly called for rate cuts and had earlier threatened to fire Powell, whose term runs through 2026.