#PowellRemarks

In his last press conference (June 19), Fed Chairman Jerome Powell kept rates at 4.25–4.50%, but issued important warnings. He said that inflation may spike due to new tariffs imposed by Trump, and that more data needs to be seen during the summer before deciding on cuts.

Powell reaffirmed that the Fed remains firm in its independence, and its projections for the year changed: they expect two cuts in 2025, but now there are seven out of 19 members who do not see any reductions at all. He also emphasized that these tariffs and geopolitical tensions could lead to “significant and persistent” inflation.

💡 In summary: Powell is alert. He does not want to rush into rate cuts until confirming that inflation is under control. And while some expect cuts, others believe there will be none this year. The message is clear: caution over haste.