#PowellRemarks June 18, 2025 Fed Insights 💬

🔹 ▪️ Rates Held Steady: Fed kept the federal funds rate at 4.25–4.50%, marking the fourth pause this year. However, they penciled in two possible cuts by year‑end, contingent on economic data.

🔹 ▪️ Tariffs Expected to Fuel Inflation: Powell warned that rising U.S. tariffs will likely push up prices, and noted that “someone has to pay for the tariffs”.

🔹 ▪️ Data-Driven Caution: The Fed stressed the need to "learn more" before making policy shifts—monitoring economic data, trade developments, and regulatory changes.

🔹 ▪️ Hawkish Tone Amid Uncertainty: Despite stable labor market and cooler inflation, Powell’s caution and stronger inflation signals unsettled markets—Treasury yields edged up, and stocks remained cautious.

🔹 Why It Matters

▪️ Macro Risks Rising: Tariffs + global tensions = path to stagflation 🔺

▪️ Crypto Impact: Higher rates & inflation can cool crypto risk appetite

▪️ Investor Strategy: Stay flexible—watch data flow, Tariff decisions, Fed commentary

💡 Bottom Line: Powell is signaling patience—no rush to ease, inflation remains the priority, and tariffs could shape significant future moves. Investors should brace for volatility and stay alert to upcoming economic updates.