Jerome Powell says inflationary impact of the president’s trade policies needs to be assessed before borrowing costs can be reduced

The chair of the Federal Reserve, Jerome Powell, has blamed Donald Trump’s tariffs for preventing the immediate interest rate cuts the president has demanded.

Trump has repeatedly urged Powell to reduce borrowing costs in the US economy, and on Monday posted a hand-scrawled note on his Truth Social platform saying: “You have cost the USA a fortune – and continue to do so – you should lower the rate by a lot!”