JAKARTA - Federal Reserve (Fed) Chairman Jerome Powell has confirmed that he will not cut the benchmark interest rate, despite market concerns about the impact of reciprocal tariffs announced by US President Donald Trump.

At the annual conference of the Society for Advancing Business Editing and Writing in Virgina on Friday (4/4), Mr Powell acknowledged that reciprocal tariffs would have a significant impact on the US, including slowing economic growth and triggering a spike in inflation.

But so far, said Powell, the Fed will still wait for various possibilities due to the implementation of reciprocal tariffs, before deciding on a benchmark interest rate cut.

Powell also emphasised that the Fed needs to ensure that price increases due to Trump's tariffs are not permanent. Given that President Trump has previously confirmed that reciprocal tariffs are one method of negotiating with a number of trading partner countries.

‘We are well positioned to wait for further clarity, before making adjustments to our policy stance,’ Mr Powell said.

Moments before Powell spoke at the conference, Trump said now was the right time for the Fed to cut interest rates. Because so far, Trump said in his personal Truth Social account, Powell has been too late in cutting interest rates.

‘Cut interest rates immediately, Jerome. Stop the current political game!’ (KR/LM)