#PowellRemarks The Federal Reserve decided to hold interest rates steady for the fourth consecutive meeting, keeping the federal funds rate in the 4.25% to 4.5% range. Chair Jerome Powell emphasized the importance of seeing more conclusive economic data before considering any rate cuts. Despite a continued cooling in inflation, Powell maintained a cautious tone, signaling that the central bank is not ready to ease policy just yet.
The Fed’s projections still show two potential rate cuts in 2025, but uncertainty looms large. Seven out of nineteen officials believe no cuts may be necessary this year, reflecting ongoing concerns about inflationary risks and global economic dynamics. Powell highlighted the importance of remaining data-dependent and reiterated the Fed’s commitment to its dual mandate.
Adding political fuel to the fire, former President Donald Trump sharply criticized Powell, labeling him “stupid” and urging a drastic two-percent cut to stimulate growth. His remarks have introduced fresh volatility into an already sensitive monetary landscape.
Investors are now reassessing their expectations for rate movements. Some expect a pivot later in the year, while others foresee prolonged caution. For now, the Fed’s message is clear—patience and prudence will guide the path forward, not political pressure or market noise.