After the Federal Open Market Committee (FOMC) meeting in June 2025, Federal Reserve Chairman Jerome Powell stated at a press conference:

• Interest Rate Policy: Maintaining the current federal funds rate at 4.25%-4.5% is the appropriate choice. The current monetary policy is slightly tightening and has certain restrictions, with no further rate hikes being the baseline expectation. In terms of rate cuts, adjustments to the policy rate will only be considered when there is a clear outlook for inflation to decline and sufficient confidence in the sustained return to the 2% inflation target.

• Economic Situation: Economic uncertainty has eased since peaking in April, with the overall economy demonstrating strong resilience, thanks to the Federal Reserve's robust policy stance. Domestic demand in the U.S. is resilient, the job market is strong, and multiple data points indicate that the economy is close to or has reached maximum employment levels, with the unemployment rate remaining low. At the same time, the GDP growth forecast for 2025 has been revised down from 1.7% in March to 1.4%, along with an upward revision of the unemployment rate and inflation forecasts, implying a risk of a mild 'stagflation' trend for the U.S. economy in the future.

• Inflation Issues: Recent inflation levels are slightly above the Federal Reserve's 2% target, with tariff-related costs being passed on to consumers. In the coming months, tariff factors will push inflation further upward, but the process of tariffs impacting inflation is uncertain. Powell emphasized the need to prevent one-time inflation from becoming entrenched. Additionally, energy shocks in the Middle East will not lead to sustained inflationary pressures in the U.S.

Overall, Powell's remarks were relatively subdued, with a slightly hawkish overall stance. In the face of uncertain tariff policies, the Federal Reserve has shifted slightly towards controlling inflation risks.