June 18, 2025 Press Conference
- Interest Rate Policy: The Federal Reserve has maintained its interest rates unchanged for the fourth consecutive time, keeping the federal funds rate target range between 4.25% and 4.50%. Powell emphasized that under the current economic situation, the Federal Reserve is 'fully conditioned to wait and further understand the possible direction of the economy', pointing out that the current monetary policy is in a 'moderately tight' state.
- Inflation Issues: Officials raised their median expectation for U.S. inflation this year from 2.7% in March to 3%. Powell stated that 'tariff-driven price increases' will become more apparent, commodity inflation has slightly increased, and it is expected to be more significant this summer. It will take time to see the impact of tariffs in the commodity distribution chain, and the Fed will not easily cut rates until there is certainty about inflation declining.
- Economic Outlook: The GDP growth expectation for this year was cut from 1.7% to 1.4%. Powell stated that 'no one has complete certainty about these interest rate paths', but there is an expectation of gaining more in-depth understanding of tariffs throughout the upcoming summer.
- Other Aspects: In response to the White House's call for rate cuts, Powell only stated that Federal Reserve officials are committed to building a robust economy. When discussing Federal Reserve layoffs, he mentioned finding 10% of employees who can qualify for other positions to streamline operations. Additionally, he pointed out that the U.S. labor market shows 'low hiring and low firing' phenomena and believes that artificial intelligence could become a factor in suppressing inflation.
February 21, 2025 Speech
Powell emphasized the rapid development of the cryptocurrency market and its accompanying risks, pointing out that the anonymity and decentralization of cryptocurrencies lead to frequent risks such as market manipulation, fraud, and technical security issues. He stated that the Federal Reserve is committed to establishing a more comprehensive regulatory framework and noted that banks have the ability to support legitimate cryptocurrency businesses, but effective risk management is necessary; regulation is not meant to stifle cryptocurrency innovation but to ensure its healthy development.
