#PowellRemarks

Federal Reserve Chairman Jerome Powell delivered his speech yesterday (June 18, 2025) following the Open Market Committee meeting, reaffirming the adherence to the 'wait-and-see' approach to maintain the central bank's independence in the face of political pressures, while committing to achieving the goals of 'maximum employment' and price stability for the benefit of American families and businesses.

In this context, the following key messages emerged:

Stability of interest rates and waiting for data

Powell emphasized that there is no specific timeline for lowering interest rates, stating that moving forward depends on the path of inflation and the labor market. This position has heightened the risks of uncertainty for investors and forced them to monitor every new economic reading for signs of an imminent change.

Focus on data quality

He warned against any decline in the ability of statistical agencies to collect and publish data accurately, explaining that weaknesses in this system could lead to incorrect decisions regarding monetary policy. He stated that economic data is a 'public good' essential for the functioning of the Federal Reserve.