#PowellRemarks Jerome Powell, as Chair of the Federal Reserve, recently made remarks following the Federal Open Market Committee (FOMC) meeting on June 18, 2025. Here are the key takeaways:

* Interest Rates Unchanged: The Fed decided to keep the benchmark federal funds rate unchanged at its current target range of 4.25% to 4.5%. This marks the fourth consecutive meeting where rates have been held steady.

* Economic Outlook: Powell stated that the economy is expanding at a "solid pace," and the labor market remains solid with a low unemployment rate (currently at 4.2%).

* Inflation Concerns: While inflation has come down significantly, it is still running somewhat above the Fed's 2% longer-run objective. The Fed expects inflation to pick up to 3% by year-end (as measured by the Personal Consumption Expenditures Price Index).

* Impact of Tariffs: Powell highlighted that increases in tariffs this year are likely to push up prices and weigh on economic activity. He emphasized that the extent of this impact depends on the size and duration of the tariffs, and the Fed is waiting to get a clearer sense of how these will pass through to inflation.

* Patience and Data-Dependence: Powell stressed that the current strength in the economy allows the Fed to be patient. The Committee will continue to assess incoming data, the evolving outlook, and the balance of risks before considering any adjustments to the policy stance.

* Rate Cut Projections: Despite the concerns about inflation, Fed officials still foresee two interest rate cuts by the end of 2025, the same as they projected in March. However, they now anticipate only one cut in 2026, down from two previously.

* Dual Mandate: Powell reiterated the Fed's commitment to its dual mandate of achieving maximum employment and stable prices, aiming to bring inflation sustainably to its 2% goal and keeping longer-term inflation expectations well anchored.

In essence, the Fed is in a "wait-and-see" mode, acknowledging a robust labor market and solid economic activity, but also expressing caution regarding