Jerome Powell, Chair of the Federal Reserve, is facing criticism due to the label ‘Too Late Powell’ after the steady interest rate decision in May, raising interest in his policies and economic strategy.
Economic Situation Intensifies
Inflation remains above the target level, while economic growth is visibly cooling after tariff shocks and tighter immigration rules. Markets price a 60 percent chance of a July rate cut, up from 35 percent a month ago.
Powell’s Defense
Powell states that the committee is data-dependent and 'in no hurry', arguing that premature easing could anchor inflation expectations higher. He insists that the Fed will act if unemployment rises or credit conditions tighten further.
Political Risks Ahead of Elections
Trump allies want rapid cuts to boost consumer sentiment, while Democrats warn that easy money could stoke asset bubbles. Any move before the Republican convention risks accusations of bias; any delay risks the 'too late' label.
The pressure on Powell is mounting, and his challenge is to exit without being labeled negatively, making the current situation particularly complex ahead of the upcoming elections.
