The Globe and Mail reports in its Wednesday edition that U.S. Federal Reserve chair Jerome Powell announced that the Fed will maintain its key interest rate while assessing the economic impact of President Donald Trump's tariffs, despite criticism from the White House advocating for lower borrowing costs. An Associated Press dispatch to The Globe reports that Mr. Powell noted that while inflation is expected to rise later this summer, the effects of the tariffs remain uncertain. He emphasized the importance of waiting to see how these tariffs influence the economy, highlighting a divide between the Fed and the White House. Mr. Trump has consistently urged for rate cuts to relieve taxpayers and stimulate growth. The fight has threatened the Fed's traditional independence from politics, though since the Supreme Court signalled the President cannot fire the chair, financial markets have not responded to Mr. Trump's criticism. The Fed chair also said that without tariffs, the Fed would probably be cutting its key rate right now. The Fed went "on hold" after it saw how large Mr. Trump's proposed tariffs were, Mr. Powell said. At the same time, Mr. Powell did not rule out a rate cut at the Fed's next policy meeting July 29-30.