Powell indicates rate cuts possible soon
The statement from Pulte comes 24 hours after Powell spoke at a European Central Bank forum, where he indicated that the Fed would have already made more extensive cuts if not for tariffs.
In response to a question as to whether the Fed would have cut by now if not for the tariffs, he said, “I think that’s right.”
“We went on hold when we saw the size of the tariffs,” Powell continued. “All inflation forecasts for the United States went up materially as a consequence of the tariffs. We didn’t overreact; in fact, we didn’t react at all. We’re simply taking some time. As long as the US economy is in solid shape, we think the prudent thing to do is to wait and learn more, and see what those effects might be. They haven’t really shown up, so, for now, we’re waiting.”
Pulte responded to Powell’s comments about expecting to see higher inflation rates this summer by calling him a “moron.” He went on to also blame the Biden administration for higher inflation and increased mortgage costs.
“Jerome Powell’s tenure as Fed Chair has been a masterclass in economic Mismanagement,” Pulte said on X. “Under Biden, his Reckless money-printing fueled 40-year-high inflation, doubled mortgage payments, and triggered historic bank collapses like SVB—leaving retirees and homeowners holding the bag.”