#PowellRemarks

📢 #PowellRemarks: Key points from Jerome Powell's latest speech on rates, inflation, and tariffs

In his most recent address, the Fed Chairman, Jerome Powell, made it clear that economic uncertainty remains high, especially due to the impact of trade tariffs and geopolitical conflicts. Although the Fed kept rates in the range of 4.25%-4.5%, projections reveal divisions: while some expect 2 cuts this year, others foresee none.

🔹 Key points:

✅ Inflation: Powell warned that prices will rise in the coming months due to tariffs, directly affecting consumers.

✅ Growth: They cut the GDP projection for 2025 (from 1.7% to 1.4%) and raised the inflation expectation (3.1%).

✅ Markets: Stocks reacted with volatility, and bonds fell following his comments.

Powell emphasized that the Fed is "well-positioned to wait" before adjusting rates, prioritizing concrete data on the effects of Trump's policies.

What's next? Markets anticipate possible cuts in September, but it will all depend on whether inflation remains persistent or if employment shows weakness.