#PowellRemarks Jerome Powell's recent remarks, specifically from the Federal Reserve's June 2025 FOMC meeting and subsequent press conference, were made yesterday, Wednesday, June 18, 2025. There haven't been any further significant remarks from him today, June 19, 2025, as the focus remains on the outcomes of the FOMC meeting.

The key takeaways from his statements yesterday were:

* Interest Rates Held Steady: The Federal Open Market Committee (FOMC) decided to maintain the federal funds rate at its current range of 4.25% to 4.5%. This marks the fourth consecutive meeting without a change.

* Tariff Impact on Inflation: Powell strongly emphasized that tariffs are expected to push inflation higher in the coming months. He acknowledged the uncertainty surrounding the full impact of these tariffs and stated that the Fed needs more data over the summer to assess the situation. The median inflation projection for the end of 2025 was raised to 3%.

* Rate Cut Projections Unchanged (for 2025): Despite the higher inflation outlook due to tariffs, the Fed still anticipates two rate cuts this year, matching their projection from March. However, there is less conviction about the path of rates beyond 2025, with the projection for 2026 cuts reduced.

* Economic Outlook: The Fed expects slower growth for 2025 (1.4% vs. 2.5% last year) and a slight increase in the unemployment rate to 4.5% by year-end (from the current 4.2%).

* "Wait and See" Approach: Powell reiterated the Fed's patient, data-dependent approach, stressing the need to gather more information, particularly on the effects of tariffs, before making further policy adjustments. He described policy as "modestly restrictive" and emphasized the Fed's flexibility to respond as risks emerge.

In essence, yesterday's remarks by Powell conveyed a central bank navigating a delicate balance: a solid labor market and some moderating inflation, but with the significant wildcard of tariffs potentially driving prices higher. The Fed is in a "wait-and-see" mode, prioritizing data collection to inform future decisions.