#PowellRemarks

#PowellRemarks Federal Reserve Chairman Jerome Powell delivered his speech yesterday (June 18, 2025) following the Federal Open Market Committee meeting, reaffirming the commitment to the '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 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 trajectory of inflation and the labor market. This stance has heightened uncertainty for investors and forced them to closely monitor every new economic reading for signs of 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.

Concerns about tariff inflation

He noted that raising tariffs causes cost pressures to be passed on to consumers and may create a temporary peak in inflation, emphasizing the need to anchor long-term expectations at 2%.