#PowellRemarks

Let's dive into the engaging conversations on #PowellRemarks.

*Key Takeaways from Jerome Powell's Remarks:*

- *Interest Rate Decision*: The Federal Reserve, led by Jerome Powell, decided to keep interest rates steady at 4.25%-4.5%, aligning with market expectations.

- *Inflation Outlook*: Powell emphasized that inflation remains above the Fed's 2% target, citing uncertainty surrounding tariffs and their potential impact on the economy.

- *Economic Projections*: The Fed's Summary of Economic Projections (SEP) indicates a 50 basis points (bps) decrease in rates in 2025, with 25 bps cuts in both 2026 and 2027.

*Market Reaction:*

- *US Dollar Index*: The USD might collect strength if policymakers predict a single rate cut in 2025 or if Powell adopts a hawkish tone on inflation.

- *Interest Rate Futures*: Markets are pricing in a 70% likelihood of the Fed cutting rates at least twice in 2025 ¹.

*Criticism from Trump:*

- *Rate Cut Criticism*: Donald Trump criticized Powell for not cutting interest rates, calling it "destructive" and claiming it would save the US "hundreds of billions" if rates were lowered.

- *Labeling Powell*: Trump also labeled Powell a "silly individual" and "real doll" on social media ² ³.

*Powell's Stance:*

- *Cautious Approach*: Powell maintains a cautious stance on rate cuts, emphasizing the need to wait and see how economic data unfolds.

- *Uncertainty*: Powell highlighted the elevated uncertainty surrounding the economy, particularly regarding tariffs and their impact on inflation ⁴ ⁵.