#PowellRemarks

Key Points

1. Keeping Interest Rates Unchanged

The main interest rate range was kept at 4.25%–4.50%, for the fourth consecutive time.

2. "Wait-and-See" Approach

Powell confirmed that the central bank should wait and monitor new economic data—especially related to inflation and jobs—before any move.

3. Impact of Tariffs

He noted that U.S. tariffs will raise costs for consumers and may affect inflation, adding "someone has to pay for the tariffs."

4. Expected Inflation and Overall Picture

Inflation is expected to rise soon, with the core PCE rate recorded at about 2.6%, and the average overall inflation at 2.3%.

FOMC projections showed that average inflation could reach 3% this year, raising growth expectations to 1.4%, and expected unemployment to 4.5%.

5. Divergence Within the Committee

Members' opinions vary: seven out of 19 do not expect any cuts during 2025, while the others expect a total decrease of 50 basis points.

6. Call for Support of Strong Economic Data

Powell warned against cutting the budget of the Bureau of Labor Statistics (BLS), emphasizing the priority of accurate economic data for future decisions.

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📊 Expected Impact on Markets

Cryptocurrencies and Stocks: The cautious tone may weigh somewhat on risk assets, but subsequent rate cut expectations remain supportive.