The Federal Reserve announced in the early hours of June 19 that the federal funds rate remains stable at the 4.25%-4.0% range, which meets everyone's expectations!

At the press conference, Powell was extremely cautious. He said that monetary policy is very flexible, but a rate cut? That will have to wait until inflation really comes down!

It is worth noting that commodity inflation has recently rebounded a bit, and it may rise again in the summer! Tariff policies are also a big variable, which is quite troublesome!

Although the Federal Reserve may cut rates by 50 basis points by the end of 2025, Powell said, "Don't rush, let the data speak!"

At this meeting, the Federal Reserve also adjusted its economic forecast: GDP growth expectations were lowered to 1.4%, while core PCE inflation expectations were raised to 3.1%!

The job market is generally stable, but the deadlock of "low hiring, low layoffs" also needs to be noted!