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Tag: Donald Trump

  • RBI Ready to Support Tariff-Hit Sectors, Says Governor Malhotra

    In the event that US President Donald Trump’s tariffs take effect, the Reserve Bank of India (RBI), as it has in the past, will intervene and offer financial assistance to the most severely affected industries to help them weather the storm, RBI Governor Sanjay Malhotra stated in Mumbai on Monday, August 25, 2025.

    Possible Impact of Trump’s 50% Tariff on Indian Exports

    Through monetary policy, the RBI essentially helped the economy during COVID by easing credit access for MSMEs and imposing a ban on term loans. In response to a query during the FIBAC annual conference, which was hosted by the Indian Banks’ Association (IBA) and FICCI, the governor stated that the 50% tax has not yet gone into effect.

    Appreciating the move, Arunabh Sinha, CEO & Founder, UClean stated, “The RBI stepping up for tariff-hit sectors is a confidence signal. Tariffs can quickly raise costs and squeeze margins, and knowing the central bank is ready to cushion that shock gives businesses the breathing space they need. What really stands out is the RBI’s push for trade in local currencies. That’s a game-changer. It cuts dollar dependence, trims transaction costs, and shields companies from the whiplash of currency swings.”

    ” For the brands that is expanding into international markets, smoother local-currency trade directly strengthens our ability to scale across borders. RBI alone cannot erase the pain of tariffs. But in an uncertain global environment, reassurance matters. When the central bank signals stability, it helps startups and growth-stage companies plan with conviction instead of hesitation. For entrepreneurs, that predictability is half the battle won. In short, this is the RBI saying: ‘Yes, the global headwinds are strong, but Indian businesses will not sail alone.’ And that assurance is priceless for anyone building for the long run,” Sinha added.

    Sectors at Risk – Textiles, Auto Parts, Gems, Shrimp

    The RBI hopes that the impact of the ongoing negotiations will be low. As you are aware, 45% of exported goods are exempt from taxes, while the remaining 55% may have an effect on certain industries, including textiles, auto parts, gems and jewellery, shrimp, and MSMEs.

    RBI Measures to Cushion the Economy

    The government is investigating it, Malhotra added. The RBI has been in a period of relaxing. In order to give the economy enough cash, it lowered the repo rate by 100 basis points. The federal bank would provide any assistance that the RBI deems necessary for the expansion of the economy, including that of the most affected sectors, as soon as possible.

    “It’s an important area on which the RBI has been working for many years, and it’s important for the country to develop trade in local currency,” Malhotra responded when asked about the rupee’s internationalisation. It protects us from foreign exchange fluctuations.

    He stated that “healthy trade is happening in local currency” and that India presently has agreements with four nations: the Maldives, Mauritius, Indonesia, and the United Arab Emirates. “It’s a slow process and would take years and decades to evolve to have trade in local currencies,” he remarked when asked how it would work out.

    Strengthening Banking Correspondents for Financial Inclusion

    In order to accomplish the aims of financial inclusion, Malhotra emphasised in his conference speech the necessity of significantly fortifying the Banking Correspondents (BCs) network.

    He went on to say that we must never forget that nearly two-thirds of our nation’s population lives in rural areas, and we have a duty to them all. Although practically every town within a 5-kilometre radius now has banking access, there is still room to improve it. In our nation’s sparsely populated areas, BCs are a useful conduit for service delivery.

    To increase the calibre, reliability, and accessibility of financial services, this channel must be reinforced. Not only is there room to enhance them, but they also need to be trained and have their service offerings expanded. He underlined that while this will increase the BCs’ financial sustainability and viability, it will also enhance the calibre and scope of their services.

    Quick
    Shots

    •RBI ready to support sectors impacted
    by potential US tariffs.

    •Proposed 50% tariff could affect
    Indian exports like textiles, auto parts, gems & jewellery, shrimp, and
    MSMEs.

    •RBI provided relief during COVID
    through credit easing, loan moratoriums, and repo rate cuts.

    •Repo Rate Cut by 100 bps – Recent
    policy step to inject liquidity and support growth.

  • Oracle Layoffs 2025: US & India OCI Teams Cut Amid AI Expansion Push

    Approximately 10% of Oracle’s Indian workforce was let go by the American computer giant, Oracle, overnight, leaving dozens of talented individuals without jobs.

    Although the business has officially stated that the cuts were due to “restructuring”, industry observers are connecting the action to a change in US policy brought about by Donald Trump’s intensified efforts to limit outsourcing and lessen reliance on H-1B visas.

    US & India OCI Teams Face Job Cuts

    Many Indians are therefore in danger of losing their employment suddenly. Oracle Cloud Infrastructure (OCI) staff in the US are still receiving layoff notices, while Oracle’s operations in India are among the most severely affected, according to Data Centre Dynamics. Cuts are also reported in Canada.

     Employees in other areas have reported being scheduled for undisclosed management meetings later this week, despite the fact that the US and India have been the first to experience job losses. This has fuelled concern that other workforce cutbacks may be imminent across Oracle’s global operations.

    Larry Ellison’s Meeting with Donald Trump

    On August 7, Larry Wilson, the CEO of Oracle, met with US President Donald Trump at the Oval Office, as per various media reports. According to reports, the conversation covered national data security concerns, technology alliances, and domestic hiring. Oracle and OpenAI announced a historic agreement shortly after, which will allow Oracle’s systems to process a significant amount of OpenAI’s data.

    The software community has expressed concern about the timing, especially as Oracle has started a massive hiring campaign at its Virginia office while reducing its workforce elsewhere. According to insiders, Oracle employees in Mexico have also received notice, and the country may experience layoffs akin to those in India. The layoffs are anticipated to have a major impact on India, where a sizable percentage of Oracle’s global staff resides.

    Oracle India had over 28,824 employees in 2024, which helped the business reach a global workforce of roughly 162,000 in 2025. The reductions will have a particularly large effect on the local talent pool because India has been a vital location for Oracle’s software development, cloud services, and technical support operations.

    In the Seattle region, which has historically served as the unit’s hub, the corporation is reportedly laying off about 150 employees. This week, affected workers received notice that their jobs were being cut. Although the precise number of job cuts is yet unknown, some with knowledge of the situation stated that performance-related concerns were a factor in the decisions. The division is still hiring for a few positions in spite of the cuts, indicating a targeted rather than comprehensive reorganisation.

    Oracle Cuts 10% of India Workforce After Trump Meeting and OpenAI Partnership Deal

    As per the recent update, Oracle, has laid off a significant portion of its personnel in India, affecting around 10% of the local workforce. There is conjecture over the motives for the abrupt reorganisation because the move coincides with the company signing a significant contract with OpenAI and having high-level discussions with US President Donald Trump.

    The timing of the layoff is what makes it more contentious. Oracle CEO Larry Wilson met with US President Donald Trump at the Oval Office just a few days before the announcement of the layoffs. The agenda covered technology collaborations, national data security, and domestic recruiting, according to a number of media reports.

    Oracle and OpenAI announced a historic agreement shortly after, which will allow Oracle’s infrastructure to process enormous amounts of AI data. Many in the tech sector think that the corporation is reallocating resources to the US market in accordance with Trump’s efforts to lessen reliance on H-1B visas and offshore.

    Global Tech Layoffs Trend in 2025

    Oracle’s action is in line with a larger pattern among large tech firms that are reducing employment elsewhere in order to offset the sharply increasing expenses of AI infrastructure.

    This year, Microsoft has laid off some 15,000 employees, and Amazon and Meta Platforms have also reduced their workforces as they reallocate funds to AI projects.

    Even the biggest companies are being forced to reevaluate their spending priorities due to the growing financial needs of AI development, which are fuelled by the requirement for enormous data centre capacity and processing power.

  • Trump Imposes 100% Tariff on Semiconductors to Boost U.S. Chip Manufacturing

    A harsh 100% tariff on imported computer chips and semiconductors was announced by US President Donald Trump on 6 August. This action may result in increased costs for tech-driven goods, including appliances, autos, and electronics. As he and Apple CEO Tim Cook spoke at the Oval Office, Trump declared, “We’ll be putting a tariff of approximately 100% on chips and semiconductors.” “But if you’re building in the United States of America, there’s no charge,” he continued.

    Major Policy Shift from Previous Tariff Exemptions

    Three months after Trump temporarily spared the majority of electronics from high tariffs, the recent tariff hike represents a significant change in policy. While some current levies remained in effect, gadgets such as computers, smartphones, and other equipment were exempt from new tariffs in April.

    Recently, US Customs revised its guidelines to exempt some electronic products from the standard 10% worldwide duty and the 125% levy on Chinese exports.

    U.S. Tech Giants Respond with Domestic Investment

    Companies that have made significant investments in domestic production, such as Apple, Nvidia, and Intel, may profit from the exception, which is part of Trump’s strategy to promote chip manufacture in the US. Almost $1.5 trillion in US investments have been promised by Big Tech since Trump took office again in January.

    Impact on Apple, Nvidia, Intel, and Global Supply Chains

    On August 6, Apple revealed a new $100 billion investment to increase American manufacturing. It is anticipated that the action will assist the business in avoiding possible iPhone tariffs. With this additional commitment, Apple has committed $600 billion in US investment over the next four years.

    The tech giant had earlier this year declared its intention to invest $500 billion and generate 20,000 jobs nationwide. Ahead of the release of a new model next month, the exemption might help Apple sidestep tariff-related pricing pressures on iPhones made in China and India.

    Following the tariff announcement, Apple shares increased 3% in after-hours trading and 5% during normal trade. Nvidia, which has increased its operations in the US and just reached a $1 trillion market value, also saw an increase. Despite recent difficulties, Intel’s stock increased as well. According to the World Semiconductor Trade Statistics, sales of chips increased by almost 20% year over year as of June, indicating that demand for the product is still high worldwide.

    Country-Specific Tariff Changes: India and Vietnam Targeted

    Strict tariffs on nations essential to Apple’s production network are another aspect of Trump’s tariff strategy. India, a significant iPhone manufacturing hub, will be subject to a 50% levy, half of which will be applied to trade imbalances and the other half as payback for India’s imports of Russian energy.

    Vietnam, a country that produces MacBooks, iPads, and Apple Watches, is already subject to a 20% levy. Trump used Apple as an example of compliance, even though precise implementation schedules and exemption requirements are yet unknown.

  • Trump Urges Intel CEO Lip-Bu Tan to Resign Over Alleged China Ties

    The CEO of the US chipmaker Intel has been urged by President Donald Trump to step down “immediately” after being accused of having problematic ties to China. He said that CEO Lip-Bu Tan was “highly conflicted” in a social media post, seemingly alluding to Mr Tan’s purported interests in businesses the US claims have ties to the Chinese military.

    It is uncommon for a president to order a company CEO to quit. Mr Tan was brought on board in March with the goal of revitalising the tech giant, which was a pioneer in the US chips sector but has recently lagged behind rivals. As part of the endeavour to revive America’s semiconductor manufacturing sector, the US government has given it billions of dollars. Intel said in a statement on 7 August that it was supporting Trump’s “America First agenda” by making large investments in the US.

    According to Intel, Lip-Bu Tan, the Board of Directors, and the firm are all steadfastly dedicated to furthering the economic and national security objectives of the United States. The business went on to say that it anticipates continuing to work with the administration.

    Intel Limiting its Footprints in USA

    Mr Tan, a venture capitalist renowned for his proficiency in the semiconductor sector, is a naturalised US citizen who was born in Malaysia and brought up in Singapore.

    In a recent update to investors, he stated that in order to meet consumer demand, the company would be reducing its production investments, including those in the US. In an attempt to “right-size” the company, Intel has already laid off thousands of employees this year.

    Stock Market Reacts to Trump’s Comments

    Trump, who has previously criticised the company and is planning to increase taxes on the semiconductor industry, attacked Intel, causing its shares to drop more than 3% by midday. Trump stated that Intel’s CEO is extremely conflicted and ought to step down right away. This problem can’t be solved in any other way. But, as both Democrats and Republicans publicly express concerns about national security, Washington has tightened restrictions since Trump’s first term, pushing to sever commercial links between the US and China in the area of advanced technology.

    National Security Concerns Intensify

    Republican Senator Tom Cotton expressed worries about Trump’s criticism in a letter to Intel’s board this week, stating that Mr Tan’s affiliations cast doubt on Intel’s capacity to manage American taxpayer funds responsibly and adhere to relevant security laws.

    Cotton cited Mr Tan’s position as the long-time CEO of Cadence Design Systems, a tech company that entered a guilty plea in July and agreed to pay $140 million to the US over allegations that its Chinese subsidiary had violated US export controls by repeatedly doing business with the nation’s National University of Defence Technology.

  • Trump Secures Historic $550B Trade Deal With Japan: Big Boost for US Auto, Agriculture Sectors

    According to President Donald Trump, Japan, one of the US’s biggest trading partners, has agreed to a “massive” trade agreement with the US. According to Trump’s social media post, the idea would result in Japan investing $550 billion (£407 billion) in America and US imports from the Asian nation being subject to a 15% levy.

    Key Highlights of the U.S.–Japan Agreement

    He went on to say that Japan will allow American products, such as rice, trucks, vehicles, and some agricultural products, to enter its economy. Shigeru Ishiba, the prime minister of Japan, praised the announcement, stating that it was the lowest number among nations having trade surpluses with the US to date.

    Tariff Reductions on US Autos and Agricultural Exports

    At a White House event on July 22, Trump boasted that he had recently struck what he believes to be the biggest trade agreement ever with Japan. He went on to say that the squad had put in a lot of time and effort on it, and that Japan has its best personnel here. And it’s a fantastic bargain for all. “I constantly stress that it must be fantastic for everyone.

    “It’s a fantastic deal,” Trump said. In an interview with reporters on July 23, Ishiba stated that the deal would reduce US car and part tariffs from 25% to 15%. “We were the first in the world to reduce tariffs on cars and auto parts without any quantity restrictions,” he stated. “The agreement does not include any reduction of tariffs on the Japanese side,” Ishiba stated.

    Japan’s Billion Dollar Investment Commitment

    Shigeto Nagai of Oxford Economics, a research firm, told BBC News that Japan’s “best compromise at this stage” is to lower its main tariff rate to 15%. The announcement’s mention of Japan’s planned investment in the US “will be a huge boost to restore the US, fitting in with Trump’s story of reviving US manufacturing with more jobs,” he continued.

    Political Context in Japan Following the Deal

    This month, Trump threatened to impose a 25% tariff on Japan’s exports to the United States unless a new trade agreement was reached by August 1. This was one percentage point higher than the 24% rate that was announced during his so-called Liberation Day on April 2.

    Following global market turbulence, the April tariffs plan—which included levies on numerous US trading partners worldwide—was put on hold for ninety days. It gave the trade delegates from Tokyo more time to engage in talks with their Washington colleagues.

    Market Reaction: Japan’s Stock Surge

    The Nikkei 225, Japan’s benchmark stock index, rose more than 3% on 23 July in Tokyo, driven primarily by advances in shares of the country’s largest automakers, such as Toyota, Nissan, and Honda. The alleged agreement comes as Ishiba faces pressure to resign following the weekend elections that cost his Liberal Democratic Party (LDP) the majority in the nation’s upper house. Last year, the LDP lost its majority in Japan’s lower house, which has more influence.

  • Trump’s Tariff Bomb: 50% on Copper, 200% on Pharma — What It Means for India

    On July 9, US President Donald Trump declared a 50% duty on copper imports into the US. Additionally, Trump has threatened to levy 200% tariffs on pharmaceutical imports after a year.

    Trump’s action may have an effect on other economies, such as India, which exports these vital commodities to other nations, even if his goal was to increase the US’s production and manufacturing of these goods.

    One of the biggest manufacturers of generic medications and a newcomer to the copper-based product manufacturing industry, India exports pharmaceutical products to western countries like the US.

    Even though India and the US are nearing the end of their bilateral trade talks, the tariffs on pharmaceuticals and copper are predicted to cause disruptions in the industrial supply chains, where India wants to take the lead.

    Tariffs Placed After National Security Assessment –Trump

    After conducting a comprehensive national security analysis, the US president announced a 50% tariff on copper imports that would take effect on August 1. According to Trump’s post on Truth Social, the Department of Defence uses copper the second most.

    He went on to say that the metal is utilised in important fields, including semiconductors, aeroplanes, and ammunition, which includes missile defence systems and hypersonic weaponry.

    Trump threatened to impose a 200% tax rate on pharmaceutical imports into the US during a meeting of the US Cabinet earlier this week.

    He stated that taxes would be applied gradually. “There are going to be tariffs at a very high rate, like 200%,” he remarked. “We’ll give them a specific amount of time to sort things out. “I’ll give them a year or a year and a half,” Trump added. The statements are just one more step in Trump’s protectionist agenda, which is spreading to other industries and areas.

    Copper Tariff to Impact India

    According to a media report, India’s global copper and copper product exports in the fiscal year 2024–2025 totalled around $2 billion, of which $360 million, or about 17%, came from the US. India is the third-largest market for US copper exports, behind China and Saudi Arabia.

    Global supply networks are predicted to be disrupted if Trump’s administration increases its own copper mining and begins to hoard the metal, which might raise prices and manufacturing costs in India. Industry executives, however, contend that since India lacks copper, the impact of such a policy would be minimal.

    According to a news agency, India imported one million tonnes of copper concentrate in 2023, with a sizable amount of these imports originating from a small number of nations, including Indonesia, Chile, and Peru.

  • Trump Organization Launches Budget Mobile Plan with $499 Smartphone Deal

    On 16 June, the Trump Organisation revealed a $499 smartphone that will go on sale in September along with a mobile phone plan.

     According to its website, Trump Mobile, the new service, will include a $47.45 monthly package that includes unlimited call, text, and data, as well as roadside assistance and a “Telehealth and Pharmacy Benefit”.

    The Trump-owned business also declared that it will market a smartphone known as the “T1”, which seems to have a gold metal casing with an American flag engraved on it.

    The new endeavour is the most recent instance of Trump’s commercial empire leveraging its affiliation with the current president to its advantage.

    Both Services Highlighting Trump Administration Period

    Trump, who is currently the 47th president of the United States and was the 45th during his first term, is referenced in both the wireless service’s name, “The 47 Plan”, and its monthly cost.

    Trump’s campaign slogan, “Make America Great Again”, is displayed on the homepage of the forthcoming phone’s website. The company’s new venture into telecoms primarily consists of a licensing arrangement, much like the range of other products that Trump and his companies have introduced throughout his political career, such as watches, trainers and Bibles.

    The website’s bottom states that neither The Trump Organisation nor any of its affiliates or principals are responsible for the design, development, production, distribution, or sale of Trump Mobile or its goods and services.

    The rush of licence agreements and other branded-merchandise partnerships surrounding Trump has sparked ethical questions from critics.

    However, with comparatively little risk to their finances or political standing, the president and his family are nonetheless pursuing profitable opportunities to diversify their holdings.

    Trump Minting Millions in 2024 Through Various Licence Agreements

    The president revealed on June 13 that he earned over $8 million in 2024 from a variety of licensing deals. Compared to competing plans offered by well-known carriers, the 47 Plan seems to be more costly.

    For example, Mint Mobile’s 12-month unlimited plan costs $30 per month, while Verizon’s more affordable option, Visible, offers an unlimited speak, text, data, and hotspot plan for $25 per month.

    The Trump Mobile website advertises that it has a customer service call centre located in the United States and that its plan provides “same coverage as the 3 nationwide phone service carriers”.

    According to the Trump Mobile website, the T1 phone has a 16.8-inch AMOLED screen, a 16-megapixel selfie camera, and Android 15. In addition, it has a 50-megapixel primary camera, 256 gigabytes of internal storage, and 12 gigabytes of RAM.

  • Musk-Trump Fallout Jeopardizes $22 Billion in SpaceX Contracts

    As his feud with President Donald Trump erupts into open warfare, Elon Musk has threatened to shut down SpaceX’s Dragon spacecraft, NASA’s only US astronaut carrier. This move will set off a spiralling crisis that could ground American spaceflight, derail moon missions, and jeopardise $22 billion in government contracts.

     What started out as a disagreement about Trump’s tax and spending plan has turned into a high-stakes confrontation with implications for the entire country.

    The CEO of SpaceX responded to Trump’s public suggestion that federal contracts with Musk’s businesses might be terminated by announcing plans to “decommission” the Dragon spacecraft, which is now NASA’s primary way of transporting humans to and from the International Space Station.

    The $5 billion contract for the capsule is essential to maintaining American access to space. NASA’s orbital footprint would be reduced, and future missions would be in jeopardy if it were to depend on Russia’s ageing Soyuz spacecraft.

    While providing no details, NASA press secretary Bethany Stevens stated that the agency will keep collaborating with commercial partners to make sure the president’s space goals are achieved.

    NASA to Take a Massive Hit

    Active contracts worth about $22 billion are at risk. These include intelligence payloads, high-priority Pentagon satellite launches, and Musk’s Starship system, which NASA has chosen to use for the Artemis III mission, which aims to land humans on the moon.

     Four astronauts currently on the ISS might still fly home if Musk cancels Dragon, but NASA wouldn’t have a means to send replacements right away.

    There are still delays with Boeing’s Starliner. Other options such as Northrop Grumman’s Cygnus and Sierra Space’s Dream Chaser remain untested or marginalised. Even NASA’s 2030 ISS retirement plan is currently in jeopardy. The vehicle that will safely deorbit the station is being built by SpaceX.

    Experts Calling Musk Rogue

    The danger posed by Musk goes well beyond low-Earth orbit. SpaceX rockets are essential to America’s upcoming moon landing, transport national security payloads, and launch secure Starlink satellites for military communications.

    Timelines fall apart in their absence. According to reports, Justus Parmar, CEO of SpaceX investor Fortuna Investments, said there is little doubt it will lead to a large loss of money and missed contract possibilities.

    More bluntly, former NASA Deputy Administrator Lori Garver was cited as saying that it is unacceptable for a rogue CEO to threaten to decommission spacecraft, endangering the lives of astronauts. With a steep 14.26% drop, Tesla’s shares (TSLA) fell to $284.70, down $47.35 from its previous close of $332.05. The stock fluctuated a lot over the day, going from a low of $273.42 to a high of $324.55.

  • Trump to Apple: ‘Don’t Build in India’—Pushes for US iPhone Manufacturing

    To satisfy American demand, Apple is dramatically increasing production of the Pro variants of its upcoming iPhone 17 series in India this year.

    Despite U.S. President Donald Trump’s concerns about Apple’s growing manufacturing presence in India, the move underscores the nation’s growing role in the tech giant’s global supply chain strategy and indicates that the company’s expansion plans remain unchanged.

    According to a media report, Apple intends to source the majority of the US iPhone demand from India, and the US has one of the largest demand for iPhone Pro models, so the scale-up of the Pro models of the forthcoming iPhone 17 series will take place this year. The scale-up is also a result of India’s growing demand for Pro models.

    Foxconn, Apple’s biggest contract manufacturing partner in India, will increase production of the iPhone 17 Pro model, the source claimed. While Tata Electronics is also engaged in the trial manufacture of components like casings for the new lineup, Foxconn has begun producing the iPhone 17 series in India.

    Last year, Apple started producing high-end iPhone Pro models at its Foxconn facility in Sriperumbudur. In contrast to the mid-twenties in India, where 50–60% of all iPhone demand is for Pro versions, another source stated that this percentage is also anticipated to increase in 2025.

    Apple Standing Firm on its Decision

    According to a media report, Apple’s plans for development in India also state that the company’s policy has not changed in spite of comments made by US President Donald Trump that criticised it.

    Additionally, the business maintains constant communication with the Indian government, assuring it of its ongoing dedication to India as a significant manufacturing hub. The expansion is expected to continue this year, according to the study.

    Since India is one of the key markets, Apple’s investment ambitions there have not changed. Speaking to Tim Cook, the CEO of Apple Inc., on May 15 in Doha, Qatar, U.S. President Donald Trump stated that unless it is expressly for that market, there is no reason to establish plants in India.

    Trump’s Advice to Tim Cook

    After speaking with Apple CEO Tim Cook in Doha, Trump informed him that his administration has no interest in Apple constructing in India and that they can handle themselves. Trump went on to say that he and Tim Cook had a minor disagreement yesterday. “I am treating you very well,” he added to his friend Cook.

    Trump further stated, “I’ve heard that you’re building all over India with the $500 billion you’re coming up with. You shouldn’t construct in India, in my opinion. Since India has some of the highest tariffs in the world, it is very difficult to sell there, but if you want to take care of the country, you may build there.”

    Trump added that India has made the United States an offer in which they essentially agree to charge America no tariffs at all.

    Apple is being treated quite well by the US government, which has tolerated all of its Chinese plants for many years. The US government currently opposes Apple’s decision to produce in India. India is capable of taking care of itself.

  • Doesn’t affect doing our job at all: US Fed Chairman on Trump’s criticism

    The benchmark interest rates of the US Federal Reserve were kept at between 4.25% and 4.50% in the most recent policy meeting held on May 7, 2025, under the direction of Chairman Jerome Powell. This meeting and its outcome were instead more about the steady and cautious approach the Fed is trying to telegraph to markets. The Federal Open Market Committee (FOMC) was essentially saying in this meeting, much as it had in the previous meeting, that it is closely watching developments and is willing to adjust either up or down if something unexpected comes along. This reflects a balancing act the Fed is trying to achieve: sticking to its inflation targets without derailing what seems to be a steady, albeit slow, economic expansion.

    Powell’s Response to Trump’s Remarks

    At the post-meeting press conference, Powell dealt with recent criticisms leveled by President Donald Trump. Trump had called for immediate rate cuts to stave off an impending economic slowdown. In an April post on Truth Social, he criticized Powell’s pace in adjusting rates, dubbing him “Mr. Too Late,” and pressed for some semblance of a timely response that would lower the cost of borrowing.

    “With these costs trending so nicely downward, just what I predicted they would do, there can almost be no inflation, but there can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW,” Trump had said in his Truth Social post.

    In response to all this, Powell stated that such comments from the executive branch have no impact on the Fed’s operations. He went on to emphasize that the Federal Reserve remains completely focused on its dual mandate.

    “Doesn’t affect doing our job at all. We’re always going to do the same thing, which is we’re going to use our tools to foster maximum employment and price stability for the benefit of the American people,” US Fed Chairman Jerome Powell told the press. Powell asserted that the Fed is an independent agency and continues to make its policy calls on the basis of a three-part assessment of the data, risks, and outlook.

    Vigilance and Flexibility

    Inflation has eased somewhat, but the economy still faces some headwinds. So the Fed’s strategy is one of vigilance and, maybe more important, flexibility. Fed Chair Jerome Powell made it clear in his press conference that the central bank is not in a rush to move, either tighten or loosen, but it stands at the ready to adjust if new risks pop up that could threaten to push the economy off its current positive trajectory.

    Fed’s FOMC committee reaffirmed its intention to make adjustments as necessary to keep supporting the economy while also safeguarding against a sudden rise in the unemployment rate or in inflation. The measured approach the Fed is now taking, and has signaled it will continue to take, aims to maintain a stable inflation rate and keep investors confident.