#PowellRemarks

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

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

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

3. Powell indicated that the tariffs imposed by the Trump administration will lead to temporary pressures on prices and may push inflation to rise in the summer, but he emphasized the need to wait for data before taking any action.

4. He described the labor market as strong and not posing any significant risks, with the job market remaining at satisfactory levels and wage growth stable, despite a slight decrease in the pace of job creation.

5. He emphasized that strong and accurate economic data are essential for the Fed and warned that cuts in 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 close to 3% according to Fed estimates, exceeding its previous target of 2%.