#PowellRemarks

Jerome Powell's recent remarks, following the June 2025 FOMC meeting, highlight the Federal Reserve's cautious stance amidst economic uncertainty. The Fed kept interest rates unchanged at 4.25%-4.5%, signaling a "wait-and-see" approach. Powell emphasized that while the U.S. economy is in a solid position with a strong labor market, inflation remains somewhat elevated.

A key concern is the impact of tariffs, which Powell expects will push up prices and weigh on economic activity, creating a "challenging scenario" where both inflation and unemployment could rise. Despite this, the Fed's projections still indicate two rate cuts later this year, though the timing and extent remain uncertain as they assess incoming data and the full effects of policy changes.