#PowellRemarks On June 18, 2025, Federal Reserve Chair Jerome Powell delivered remarks following a Federal Open Market Committee (FOMC) meeting, addressing the current economic landscape and the Fed's monetary policy stance. Here are the key points from his remarks:

### Economic Outlook

- **Stagflation Concerns**: Powell indicated that the Fed is concerned about potential stagflation, a situation characterized by stagnant economic growth and high inflation. The central bank has projected two rate cuts for the year, despite rising inflation expectations.

- **Labor Market Strength**: He noted the sustained strength in the labor market, stating that there are no immediate signs of economic weakening. Powell emphasized that the U.S. economy has consistently defied forecasts predicting a downturn.

### Inflation and Tariffs

- **Impact of Tariffs**: Powell discussed the effects of tariffs on inflation, stating that they are likely to lead to increased costs for businesses and consumers. He mentioned that the full impact of tariffs on consumer prices has yet to be realized, as it takes time for these costs to filter through the supply chain.

- **Consumer Price Index (CPI)**: He highlighted expectations of a meaningful increase in inflation due to tariffs, which will ultimately be passed on to consumers.

### Monetary Policy

- **Data Dependency**: Powell stressed that the Fed's future decisions on interest rates will be highly data-dependent, reflecting the current economic uncertainty. He advised caution in interpreting the Fed's "dot plot," which outlines individual members' expectations for future rate paths.

- **Current Stance**: The Fed is currently positioned to wait and gather more information before making further adjustments to monetary policy. Powell expressed confidence in the current policy stance, indicating that the committee is prepared to respond to emerging risks.