#PowellRemarks #PowellRemarks

In a press conference held on June 18, 2025, after a meeting of the Federal Open Market Committee (FOMC), Federal Reserve Chairman Jerome Powell confirmed the following points:

1. To keep interest rates unchanged in the range of 4.25 – 4.50%, for the fourth consecutive time, despite political pressure from President Trump who called for a reduction.

2. It is likely that two potential interest rate cuts will occur before the end of 2025, although 7 out of 19 committee members expect no rate cuts this year.

3. Powell indicated that the tariffs imposed by the Trump administration would lead to temporary pressures on prices and could push inflation up in the summer, but stressed the need to wait for data before taking any action.

4. He described the labor market as strong and posing little risk, with the job market remaining at satisfactory levels and wage growth stable, despite a slight slowdown in job creation.

5. He emphasized that strong and accurate economic data is essential for the Fed, and warned that cuts to the economic data collection budget (such as BLS) could put the Fed in a position of "flying blind" in assessing the economy.

6. He expressed concern about ongoing inflation risks, with inflation expectations for the current year near 3% according to Fed estimates, exceeding its old target of 2%.