#PowellRemarks
The Fed yesterday kept the key interest rate at 4.25–4.5%, maintaining its forecast of two cuts by the end of the year.
However, Jerome Powell emphasized:
• Inflation driven by tariffs is likely to accelerate in the summer (“someone has to pay for the tariffs”).
• The economic forecast is shattered by high uncertainty — politics, tariffs, global risks.
• Rate cuts are postponed — the Fed prefers to “wait and see.”
📊 Markets reacted:
Indices fell, treasuries rose — investors are nervous about the potential rise in inflation.