#PowellRemarks

Powell (June 2025): Tariffs and Inflationary Caution

Jerome Powell, the chair of the Fed, maintained caution following the June 2025 decision to keep interest rates stable (4.25%-4.5%). Although two rate cuts are projected this year, he emphasized the dependence on data and high uncertainty.

The main concern is inflation. Powell warned of a significant increase in the prices of goods during the summer due to the full impact of the tariffs imposed by the Trump administration, raising inflation projections. They need more time to assess the actual impact.

The labor market remains resilient, which does not pressure for urgent cuts. The Fed, maintaining its independence, prioritizes long-term inflation control. In summary, Powell indicated that any future movement in rates will depend on how the effects of the tariffs settle and the overall evolution of prices.