SUMMARY OF FED CHAIR POWELL'S STATEMENT (06/19/2025)
🇺🇸 U.S. Economy: Steady growth at 1.5% - 2%, strong labor market with low unemployment rate.
Inflation: Decreased from its peak but still above the 2% target. Core PCE index for May is projected to reach 2.6%. The Fed notes that inflation may rise due to the impact of tariffs.
💰Interest Rates: Maintained at 4.25% - 4.5%. Powell emphasized the need for more data on tariffs and fiscal policy before considering adjustments.
Tariffs: A significant risk that could drive prices up, affecting consumption and the economy. The Fed is closely monitoring but has not clearly determined the impact.
🚨 Key Message:
The Fed maintains a cautious approach, based on actual data.
Current policy is flexible enough to adjust when necessary.
Goal: Bring inflation down to a sustainable 2%, while protecting jobs.
🚨 Market Reaction: Stocks slightly down, USD appreciates. Investors believe the Fed maintains a “soft hawkish” stance, cautious and not ready to ease.
Conclusion: The Fed continues to be patient, focusing on stabilizing inflation and employment, waiting for more data on tariffs and the economy before deciding the next steps. Powell avoids commenting on politics or the future of the term.