Key Takeaways from the Fed’s Latest Remarks:
The Fed is holding interest rates steady for now. Even with a strong economy and a solid job market, uncertainty is on the rise.
Inflation is still running high, and there's growing concern about a potential uptick in unemployment.
Rate cuts aren’t on the table anytime soon. The Fed is staying focused on its dual mandate: maximum employment and price stability.
Jerome Powell noted that inflation has “come down significantly,” but warned that if tariffs remain in place, we could see more inflation, slower growth, and higher unemployment.
He added that without a reduction in tariffs, the Fed likely won’t make meaningful progress on its goals this year.
Powell also made it clear he doesn’t feel any urgency to adjust rates: “I don’t think we need to rush.” Markets are currently pricing at a possible rate cut by the end of July.
On his relationship with the White House, Powell stated bluntly: “I’ve never asked to meet with the President — and I never would. The President hasn’t wanted to meet with me either.”
