#PowellRemarks

Federal Reserve Chair Jerome Powell signaled a cautious, slightly hawkish stance following the June FOMC meeting. The Fed held rates steady at 4.25–4.50%, but Powell emphasized that inflation—especially from tariffs—remains a concern, warning that consumers “will bear the cost.” The Fed downgraded its growth forecast to around 1.4% while expecting inflation to hover near 3% this year, higher than its 2% target. Though markets anticipate two rate cuts later in the year, Powell stressed that future moves will depend on incoming data, delaying any adjustments until September. He acknowledged the “elevated” uncertainty tied to trade policy and geopolitical tensions. Despite a stable labor market, the Fed is prepared to act if inflation becomes entrenched. Overall, Powell’s remarks underscore a data-dependent strategy aimed at balancing growth support with price stability, pushing investors to remain vigilant amid persistent inflation risks.