Powell makes a strong statement! No matter what Trump does, the Federal Reserve remains inactive!

Key points from Powell's speech:

The primary issue is tariffs, not the labor market.

Whatever Trump does is not my concern; I will decide whether to cut interest rates based on what he does, and the debt issue is not my responsibility.

The economy is stable, but inflation risks are increasing.

Employment is strong, the economy is stable, but growth exceeds expectations, and inflation pressures are emerging.

Good employment data does not guarantee a rate cut.

How low does the employment rate have to be for a rate cut? I don’t know; it all depends on the actual situation.

Waiting to see Trump’s performance.

GDP data dropped by 0.3% due to imports; it doesn’t matter, I’m just waiting to see what Trump does.

No thoughts on trade negotiations.

Decrease in port shipments and stalled negotiations? Not my concern; I’m only focused on interest rates and demand.

Key points from the FOMC statement:

Interest rates remain unchanged at 4.25%-4.50%, holding steady for the third consecutive time.

The labor market is stable, and the workforce remains strong.

Continue to reduce the balance sheet, cutting down on Treasury and MBS holdings.

Inflation pressures remain high, and risks are rising.

The economic outlook is unclear, but growth remains 'stable'.

Conclusion: Powell speaks out, the Federal Reserve remains inactive, everything depends on Trump’s moves!