News and Commentary

On June 18, 2025, Federal Reserve Chair Jerome Powell delivered his speech following the Federal Open Market Committee meeting, reaffirming the commitment to a 'wait and see' approach to maintain the independence of the central bank in the face of political pressures, while adhering to the goals of 'maximum employment' and price stability to benefit American households 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 trajectory of inflation and the labor market. This stance heightened the risks of uncertainty for investors and forced them to monitor every new economic reading for signs of a near-term change.

Focus on Data Quality

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