US stock indices were mixed on Tuesday with NASDAQ and S&P 500 dropping, but Dow Jones bucked the trends with gains.
Federal Reserve Chair Jerome Powell said the bank would’ve cut interest rates if it weren’t for President Trump’s tariff plans.
In response to a question at the European Central Bank Forum in Portugal, he said the Fed paused its moves on interest rates when it saw the size of the tariffs, with inflation forecasts rising after their announcement.
The Fed has maintained interest rates unchanged below 4.5% despite mounting pressures from the White House.
The Fed expects two interest rate cuts by the end of 2025, with Powell even opening the door for a July rate cut based on the data.
The markets expect a 76% chance of no changes in interest rates in July.
Trump has continued to attack Powell heavily due to his stance on interest rates, and publicly announcing plans to replace him soon.
Powell’s Fed Chair term ends in 2026, while his term as member of the Fed ends in 2028.
Otherwise, earlier US data showed the ISM manufacturing PMI up to 49 in June from 48.5 in May.
Official data showed US job openings rose to 7.8 million in May from 7.4 million in the previous reading.
At the close, Dow Jones rallied 0.9%, or 400 points to 44,495 points, with a session-high at 44,604 points.
S&P 500 fell 0.1%, or 7 points to 6198 points, with a session-high at 6210 points.
NASDAQ shed 0.8%, or 167 points to 20,203 points, with a session-high at 20,339 points.
