What Powell Said

• Rates Paused, But Cuts Still Possible

The Federal Reserve kept the federal funds rate at 4.25–4.50%, signaling the possibility of two quarter-point cuts in 2025—though timing remains data-dependent  .

• Tariffs May Fuel Inflation

Powell warned that tariffs might lead to “meaningful” inflation, possibly more persistent than expected. This reinforces the Fed’s cautious posture  .

• Economic Outlook & Risks

With solid job growth, moderate wage rise, and GDP forecast at ~1.4% for this year, the Fed emphasized ongoing uncertainty—especially from trade tensions and geopolitical events like the Israel–Iran situation .

• Data-Driven & Independent

Powell underscored reliance on hard data and defended the Fed’s independence amidst political pressure, including criticism from President Trump #PowellRemarks