#PowellRemarks

Key Highlights from Powell’s Press Conference

Rates Held Steady

1.The Fed left the benchmark rate unchanged at 4.25–4.50%, emphasizing patience amid ongoing uncertainty.

2.Tariff-Driven Inflation on the Horizon

Powell warned that rising import tariffs will likely push consumer prices higher—“someone has to pay for the tariffs”

3.Caution Over Data Cuts

He stressed the importance of robust economic data and cautioned against budget-driven cutbacks in agencies like the BLS, which could hinder inflation tracking

4.Forecasts & Dot Plot

Growth forecasts were downgraded (GDP: 1.4% for 2025), core inflation projections rose to 3%, and the dot plot maintains expectations for two rate cuts by year-end—though some FOMC members now see none

5.Market Reaction & Tone

Markets responded with slight dips in stocks and a rise in bond yields. Powell underscored that the Fed remains data dependent, not politically influenced

Powell’s message was clear: the Fed remains vigilant on inflation, cautiously monitoring data, and not rushing into cuts. Tariffs and global risks are on the radar; the Fed may ease later, but not yet.