#powellremarks #FOMCMeeting

Summary of FOMC Meeting.

1- Fed Holds Rates Steady: The Federal Reserve kept its key interest rate unchanged for the fourth consecutive meeting, citing a "solid" U.S. economy despite rising uncertainty.

2- Weaker Outlook: The Fed now expects slower growth (1.4%), higher inflation (3%), and a modest rise in unemployment (to 4.5%) by year-end—worse than its March projections.

3- Tariff Uncertainty Looms: The Fed is cautious about future rate decisions due to uncertainty around Trump’s tariffs, which could raise prices and hurt economic activity.

4- Limited Future Cuts: The Fed now anticipates only one rate cut in 2026, down from two previously. Trump continues pressuring the Fed for cuts, citing rising government borrowing costs.

5- Global Divergence: While the Fed holds steady, other central banks (UK, Canada, EU) have cut rates this year due to economic strain from U.S. tariffs—highlighting diverging global monetary policies.