🚨🚨Jerome Powell – Part 2

No Rush, No Clarity: Fed Signals Strategic Patience Amid Trade Turbulence

The second wave of Powell’s remarks today revealed a clear stance: the Federal Reserve won’t be rushed — not by markets, not by political noise, and certainly not by incomplete data.

Speaking on May 7, 2025, Fed Chair Jerome Powell doubled down on the institution’s cautious posture:

• The long-term inflation impact of tariffs remains unknown

• Stable prices are non-negotiable for sustainable employment

• The current 4.50% rate is “well-positioned” — no imminent change expected

• No urgency to cut — in fact, cuts may be delayed until 2026 if inflation rebounds

• Economic uncertainty is high, largely due to trade tensions

• Q1 macro data distortions aren’t enough to justify action

• High tariffs = high inflation risk = policy inertia

Powell’s key message? “We need more data.”

While markets still cling to the July cut narrative, Powell opened the door to a very different outcome: no cuts at all in 2025 if price pressures persist.

But there’s nuance. He acknowledged there are valid scenarios for rate cuts this year, especially if wage growth slows and inflation expectations stabilize.

All eyes now turn to the White House, where upcoming trade negotiations could define the inflation trajectory. Until then, the Fed is watching — but not moving.

To the #AMAGE community:

Are traders too optimistic — or is Powell simply keeping every option open to protect the Fed’s credibility?