#PowellRemarks

Jerome Powell's Remarks (#PowellRemarks) - June 11, 2025**

Key Remarks:**

1. **Maintaining the interest rate** at **5.5%** (the current level since July 2023), with any cuts excluded until **October 2025** at the earliest.

2. **Inflation** remains above target (3.4% vs. 2%), especially in the services and housing sectors.

3. **Explicit Warning**: "The data does not justify any monetary easing... We will need **months of inflation improvement**".

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Immediate Market Impacts:**

- **📉 Decline in U.S. Stocks**: The S&P 500 index fell 1.2%, with the technology sector being the most affected (-2.1%).

- **📈 Rise of the Dollar**: The Dollar Index (DXY) rose 0.8% to a three-month high.

- **⛔ Disappointment for Investors**: Expectations for an interest rate cut in September dropped from 68% to 15%.

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Why this stance?**

- **Strength of the Labor Market**: Unemployment rate at 3.9% (lower than expected).

- **Household Consumption is Resilient** despite loan pressures.

- **Geopolitical Risks**: Shipping crises in the Red Sea and Asia threaten supply chains.