#PowellRemarks

Federal Reserve Chair Jerome Powell recently delivered remarks at Princeton University and various conferences, sharing insights on the economy, monetary policy, and public service. Here are some key takeaways ¹ ²:

Economic Outlook

- The Fed has left interest rates unchanged at 4.25%-4.5% due to economic uncertainty, but signals two potential rate cuts in 2025, aiming to bring the Federal Funds Rate to 3.75%-4% by year-end.

- Economic growth is expected to slow to 1.4% this year, down from the previously projected 1.7%, while core PCE inflation is forecast at 3.1%, up from 2.8% in March.

Monetary Policy

- The Fed's decision to hold rates steady reflects its cautious approach, prioritizing data-driven decisions amid uncertainty over inflation, fiscal policy, and tariffs.

- Powell emphasized the importance of flexibility in monetary policy, acknowledging that uncertainty remains a key factor in shaping the economic outlook.

Public Service

- In his remarks at Princeton University, Powell encouraged graduates to consider public service, highlighting its value in making a positive impact on society.

- He shared his own experiences in public service, emphasizing the importance of taking risks, learning from mistakes, and staying committed to one's values.

Key Quotes

- "From everyone who has been given much, much will be demanded." - Powell quoting the Gospel of Luke, emphasizing the responsibility that comes with privilege.

- "Life moves pretty fast. For the time being, we are well positioned to wait for greater clarity before considering any adjustments to our policy stance." - Powell referencing Ferris Bueller, highlighting the Fed's patient approach to policymaking ³.