#PowellRemarks

Key points from Powell's statement on June 18, 2025

Interest Rates and Political Position

The Federal Reserve decided to keep the federal funds rate unchanged at 4.25% to 4.5%.

Powell emphasized that the current monetary policy is "slightly restrictive" and that the Fed is "well-prepared to wait" for further economic data before making additional adjustments.

The Fed continues to reduce its balance sheet and remains committed to fulfilling its dual mandate of maximum employment and stable prices.

Economic Outlook

The American economy remains solid, with an unemployment rate of 4.2% and an average job growth of 135,000 per month over the last quarter.

GDP growth slowed in the first quarter, mainly due to fluctuations in net exports related to companies that imported ahead of potential tariffs, but private domestic demand remained strong.

The Fed's median projection expects GDP to grow by 1.4% in 2025 and by 1.6% in 2026, both slightly slower than earlier forecasts.