#PowellRemarks #PowellRemarks

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

1. Keeping 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 there will be two potential cuts in interest rates 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 price pressures and might 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 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 robust and accurate economic data are essential for the Fed, warning that cuts to the economic data collection budget (such as BLS) could put the Fed in a "flying blind" position 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%.