June 2025 | Federal Reserve Insights
🔹 Consumer Spending Outlook
“It’s still unclear how sentiment shifts will affect consumer spending.”
🔹 Monetary Policy Preparedness
“Our current monetary policy stance is well-positioned to handle unforeseen events.”
🔹 Inflation Expectations Rising
“Short-term inflation expectations have increased recently.”
🔹 Tariffs & Inflation Pressure
“New tariffs will likely weigh on economic activity and could push inflation higher.”
🔹 Combating Persistent Inflation
“It’s our responsibility to ensure one-time price shocks don’t evolve into sustained inflation.”
🔹 High Forecast Uncertainty
“FOMC projections are subject to unusually high levels of uncertainty.”
🔹 Positive Inflation Trends
“We’ve had three months of favorable inflation data — that’s encouraging.”
🔹 Rate Decision Patience
“The Fed has good reason to wait before considering rate changes.”
🔹 Uncertainty Easing
“While uncertainty was high, we’re seeing signs it’s beginning to decline.”
🔹 Rate Cuts in Sight?
“We’re likely approaching a point where rate cuts will be appropriate.”
🔹 The Value of Waiting
“We’ll make a more informed decision by waiting a couple more months.”
🟡 Market watchers: Powell’s message is clear — the Fed is in “wait and see” mode, but the path to potential rate cuts is taking shape.