Powell’s Latest Remarks: Fed Holds Rates, Cites Solid Economy and Persistent Inflation
At the June 18, 2025 FOMC meeting, Federal Reserve Chair Jerome Powell announced that the Fed is keeping its policy interest rate unchanged at 4.25%–4.50%. Powell emphasized the U.S. economy remains in a solid position, with low unemployment and a labor market near maximum employment. However, he noted that inflation, while down significantly from its peak, is still running somewhat above the Fed’s 2% target.
Powell highlighted ongoing uncertainty due to trade policy and swings in net exports, which have complicated GDP measurement. Despite these uncertainties, the Fed believes its current monetary policy stance is well positioned to respond to future developments. Powell also stressed the importance of maintaining robust economic data collection, warning against government cutbacks that could undermine the quality of economic insights vital for policy decisions
