#PowellRemarks Chairman of the Fed Jerome Powell recently made key statements regarding the decision to keep interest rates at 4.25–4.50% during the FOMC meeting on June 18, 2025, with the following highlights:

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🏦 1. Maintain interest rates, but warn of rising inflation

• The Fed keeps interest rates unchanged as expected—for the fourth consecutive time—but simultaneously adjusts the core PCE inflation forecast to 3.1% in 2025 (up from 2.8%).

• Powell emphasized "someone has to pay for the tariffs" – meaning part of the cost from tariffs will be passed on to consumers.

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🔍 2. Wait for more data before cutting rates

• Vice Chairman Powell stated that the Fed needs to "learn more" – to gather more data – before taking action, especially due to the unclear impacts of trade and fiscal policies.

• Forecasts suggest there may only be 2 rate cuts this year, but opinions within the Fed support fewer cuts – as many as 7 out of 19 members do not expect any cuts at all.

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🌐 3. Low growth risk — stagflation?

• The Fed lowered its GDP growth forecast for 2025 to 1.4%, while also warning of persistent inflation, increasing the risk of stagflation (high inflation, low growth).

• Powell described the current economic data pool as "sufficient to work with," but opposed budget cuts for the Bureau of Statistics – as a lack of data could leave the economy "flying blind."

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✊ 4. Affirming independence amid political pressure

• Trump and officials from the White House have criticized Powell as "crazy/stupid" for not immediately cutting rates.

• Powell emphasized that all policy decisions are based on "objective, non-political analysis."

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