At the FOMC press conference on June 18, 2025, Fed Chair Jerome Powell signaled that inflationary pressures are still real and may increase in the coming months. Although the benchmark interest rate of 4.25%–4.50% is maintained, Powell's tone tends to be hawkish:
He referred to the increase in inflation as a 'significant scale' effect of import tariffs and geopolitical conflicts.
However, Powell emphasized that economic data such as economic growth and the labor market serve as the basis for policy decisions—not political pressure.
The latest economic projections indicate the possibility of two interest rate cuts this year, but this could be delayed until September or late 2025 if inflation remains high.
Powell also affirmed the independence of The Fed's policy, rejecting political pressure despite criticism from the previous president. This cautious tone signifies the central bank's commitment to ensuring inflation is back under control before starting interest rate cuts.