Federal Reserve Chief Jerome Powell said it is premature to lower interest rates, citing the potential impact of tariffs.

U.S. Federal Reserve Chair Jerome Powell on Tuesday reiterated the U.S. central bank plans to "wait and learn more" about the impact of tariffs on inflation before lowering interest rates, again setting aside President Donald Trump's demands for immediate and deep rate cuts.

Donald Trump has threatened to increase levies on Japan and cast doubt that the US will reach a deal with its Asian ally, as he escalated his trade rhetoric days before his pause on some steep tariffs is set to expire.

Early on, Trump had expressed optimism about the potential for a quick trade deal with Japan, as he sought to renegotiate terms with dozens of countries during his reciprocal tariff pause. So far, with the deadline approaching,