SUMMARY OF FED CHAIR POWELL'S NOTABLE STATEMENT (19/6/2025)
- The FED's inflation forecast for this year is higher due to tariffs.
- It will take time to assess the impact of inflation.
- It is likely that a time will come when cutting interest rates is reasonable.
- The FED will make more "prudent" decisions if it waits a few more months.
- The FED forecasts a "significant" level of inflation in the coming months, while the unemployment rate remains at a "reasonable" level.
- The FED is currently in a favorable position to wait before making policy adjustments.
- Mr. Jerome Powell declined to answer directly questions about the recent harsh words from President Trump.
👉As predicted, the FED Chair has chosen a cautious approach.