#PowellRemarks
Federal Reserve Chair Jerome Powell, in his June 19, 2025 address, reaffirmed the decision to keep interest rates steady at 4.25–4.50% for the fourth consecutive meeting, citing the need for more clarity amid economic uncertainties. Powell highlighted rising inflationary pressures, especially from recently imposed tariffs, warning that these costs are beginning to filter through to consumers. Despite some cooling in inflation and a stable labor market with unemployment holding around 4.2%, the Fed remains cautious. Powell noted that while the central bank’s outlook still includes the possibility of two rate cuts in 2025, the forecast is “foggy” and not held with strong conviction. He emphasized that monetary policy will stay modestly restrictive until there’s consistent data showing sustained improvement. Overall, his remarks signal a watchful and patient Fed, balancing inflation control with economic stability in an increasingly unpredictable global environment.
