#PowellRemarks

June 2025

📅 Comment on the statement by Jerome Powell, Chair of the Federal Reserve of the USA (Fed)

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🗣️ Key points from Powell's statement (latest FOMC meeting – June 12, 2025):

🏦 1. Interest rates:

"We are not yet ready to declare victory over inflation."

• Federal funds rate maintained at 5.25–5.50%.

• Fed forecasts only one rate cut in 2025 (previously projected 3).

• Powell noted that inflation has been above target (2%) for too long.

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📊 2. State of the economy:

• Labor market strong, but signs of slowdown are visible.

• GDP growth projected at 2.1% in 2025 (revised upward).

• Core CPI inflation still >3%, delaying possible rate cuts.

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📉 3. Fed concerns:

• Service inflation still too high.

• Premature easing of monetary policy could "entrench" inflation.

• Powell stated:

"We need more data confirming a sustained decline in inflation before we make a decision on cuts."

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🔄 Market reactions:

Market Reaction to Powell's remarks

📈 Nasdaq Drop after the conference

📉 Bitcoin Slight correction – investors fear a more expensive dollar

💵 USD Dollar Strengthening against EUR and JPY

🪙 Gold Drop – higher rates discourage non-interest-bearing assets

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🔮 What does this mean for you?

• 👀 Crypto and tech stocks: may be under pressure until the Fed softens its tone.

• 💹 Traders looking for entry points ahead of future cuts – but not too soon.

• 🧠 Long-term investors: better prepare for an extended phase of higher rates.