#PowellRemarks

Federal Reserve Chair Jerome Powell recently shared insights on the economy and monetary policy. Here are some key points from his remarks ¹ ²:

- *Interest Rates*: The Fed decided to keep interest rates steady at 4.25%-4.50% due to economic uncertainty. Powell mentioned that the rate was left alone to see how economic forces interact before making a big move.

- *Rate Cuts*: The Fed signals two more rate cuts ahead in 2025, with the Federal Funds Rate expected to be at 3.75%-4% by year-end. This decision is reflected in the Fed's Summary of Economic Projections, known as the Dot Plots.

- *Economic Outlook*: Powell stated that the economy is still in a good place, with unemployment at historically low levels around 4%. However, he acknowledged uncertainty around the economic outlook, citing factors like tariffs and fiscal policy.

- *Inflation*: Core PCE inflation is projected to reach 3.1%, up from 2.8% in March, while economic growth is expected to slow to 1.4% this year.