Powell Remarks
In his latest remarks, Powell communicated a firm, data-driven stance:
He confirmed that rates remain at 4.25 – 4.5%, with no immediate intention of cuts, given the inflation risks post-tariffs.
The GDP growth forecast for 2025 was lowered to ~1.4%, and core PCE inflation was revised to 3%.
He emphasized that the economy and employment remain strong, although uncertainty regarding trade policies and conflicts remains high.
The committee is still considering possible cuts, but some members expect none, suggesting a “terminal rate” possibly higher than estimated.
Summary: Powell prioritizes data and stability, with a patient and cautious approach, indicating that any adjustment will depend on the actual impact of tariffs and external tensions.