#PowellRemarks Jerome Powell, Chairman of the U.S. Federal Reserve, made key statements recently following the Federal Open Market Committee (FOMC) meeting on June 18, 2025. Here are the main points:
♦️Interest rate hold: The Federal Reserve kept the target federal funds rate unchanged for the fourth consecutive time, at a range of 4.25% to 4.5%.
♦️Impact of tariffs: Powell confirmed that increases in tariffs this year are likely to lead to higher prices and negatively affect economic activity. He noted that uncertainty about the level and duration of these tariffs makes it difficult to assess their full impact.
♦️Waiting for more data: Powell emphasized that the U.S. economy remains in a strong position, giving the Federal Reserve the ability to pause and wait for more economic data before making any decisions regarding monetary policy adjustments.
♦️Inflation and labor market: Although inflation has decreased significantly, it remains slightly above the Federal Reserve's target of 2%. In contrast, the labor market remains strong, with a low unemployment rate (4.2%) and wage growth.
♦️Dual mandate: Powell reaffirmed the Federal Reserve's commitment to its dual mandate of maximizing employment and stabilizing prices.
♦️Political pressures: Powell faced significant pressure from the Trump administration to lower interest rates, but he emphasized that the Federal Reserve's decisions are independent and based on economic data and the goals of employment and inflation.
Overall, Powell's statements indicate that the Federal Reserve is in a wait-and-see position to assess the impact of tariffs and economic developments before considering any changes to its monetary policy🤔🤔.
