#PowellRemarks June 18, 2025 FOMC meeting Chair Powell's remarks:
Rate Remain Steady: The Fed held the Federal funds rate at 4.25%-4.50%, marking the fourth consecutive pause.
Tariffs & Inflation Risk : Powell acknowledged that new tariffs are expected to increase prices.
Economic Overview : Growth GDP slow to 1.4% for 2025, Unemployment steady near 4.2%, PCE inflation 2.3%.
Outlook on Rate Cuts : The Fed still projects two rate cuts in 2025, though the timing is uncertain- many analysts except the first cut in September.
Federal Data Infrastructure : Powell raised concerns about proposed budget cuts to agencies like the Bureau of Labor Statistics, warning that diminishing data quality could leave policymakers.
Fed's Independence : Deposit political pressure- especially from President Donald Trump, who reportedly called Powell "stupid" and demanded rate cuts- Powell emphasized the Fed's independence and adherence to it's dual mandate.