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Powell Speech Summary – June 18, 2025:

• The economy is strong, growth is between 1.5% and 2%.

• The labor market is solid, unemployment is low.

• Inflation remains above target, and core inflation has risen.

• Tariffs are weighing on prices and may delay a rate cut.

• The Fed needs more data before making a decision.

• No change in interest rates currently, but a cut is possible if inflation continues to improve.

• Powell: We are monitoring the conflict between Israel and Iran. Higher energy prices are likely, but they will likely not affect inflation permanently.

Conclusion:

The Fed is cautious. Inflation remains high. Tariffs are delaying a rate cut. The conflict in the region is under close scrutiny... but the market is doing well for now.

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