SHORT SUMMARY – FED PRESS CONFERENCE (Q&A SESSION)
1. On Criticism & Independence: Powell affirmed that the Fed is independent and focused on price stability and employment, unaffected by political pressure.
2. On Immigration & Labor Market: Unemployment remains steady at 4.2%. Although immigration has slowed, hiring demand is also cooling at a healthy pace.
3. On SEP & Communication Updates: The Fed may adjust the SEP and communication tools this fall, but only with broad consensus. Powell said current communication is effective.
4. On Why No Rate Cut Yet: Inflation forecasts for 2025 have risen from 2.5% to 3.1% due to tariffs. That’s why the Fed isn’t cutting rates now.
5. On Tariff Cost Pressure: Tariffs are raising costs, and consumers will feel the impact. The Fed wants clearer data before making any moves.
6. On Market Sentiment: April’s tariff news shocked markets, but business sentiment has since improved as firms adapt.
7. On Policy Philosophy: The Fed relies on long-term data, not short-term trends. More time is needed to fully assess tariff impacts before adjusting policy.
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