#PowellRemarks

Powell Maintains Calm: Rates Unchanged and Eye on Inflation.

Jerome Powell, chairman of the Federal Reserve, has once again become the center of attention following the FOMC meeting on June 18. The Fed decided to keep interest rates stable, in the range of 4.25%-4.50%, for the fourth consecutive time.

Powell emphasized that the Fed needs more confidence that inflation is heading sustainably towards 2%. He highlighted that the impact of tariffs is an unknown, as they could raise prices and affect economic activity, making visibility on inflation more difficult.

Despite projections that still hint at two rate cuts by the end of 2025, Powell was cautious, pointing out that the current economic strength allows the Fed to be patient and wait for more data. "We will make smarter decisions if we wait," he stated. Although the Fed revised down growth and up unemployment and inflation, Powell insisted that the labor market does not demand a rate cut.

His comments reaffirm a data-dependent and patient stance in an uncertain economic environment.

In my opinion, his statements are quite ambiguous regarding the future of rates; what do you think?