#PowellRemarks #PowellRemarks

Here is a concise summary of the **Fed Chair Powell's remarks on June 18, 2025** and their potential implications:

### **Key Points:**

1. **Rate Cuts Delayed, Not Denied**

- The Fed sees cuts as likely but is waiting for **more data** (likely Q3/Q4 2025). Markets may need to adjust their timing expectations.

- *Why?* They want **certainty** that inflation is sustainably close to 2% before acting.

2. **"Wait and See" Mode**

- The Fed is prioritizing **caution** over speed, avoiding premature moves that could reignite inflation or destabilize growth.

- *Watch:* Upcoming CPI, employment, and GDP reports for clues on timing.

3. **Inflation Warning**

- Powell warned of a **"significant increase" in inflation** looming, likely due to persistent supply shocks or energy prices.

- *Implication:* Rate cuts could be **more shallow or delayed further** if inflation spikes.

4. **Strong Labor Market = No Rush**

- Low unemployment (likely around 3.5–4%) gives the Fed **room to keep rates higher for longer** without urgent pressure to ease.

5. **Lagged Effects of Inflation**

- Powell emphasized that inflation trends develop **gradually**, suggesting patience is needed before declaring victory.

#Market and Economic Implications:**

- **Short-term:** Stocks may drop due to delayed cuts, but stability in employment could limit the decline.

- **Bonds:** Yields may remain elevated; traders may postpone their rate cut bets.

- **Consumers/Businesses:** Borrowing costs (mortgages, loans) remain high until late 2025.#CryptoStocks