#PowellRemarks
Here are the highlights from Jerome Powell's recent statements
🏦 Key Points
1. **More Cautious Monetary Policy**
The Federal Reserve kept the interest rate unchanged at 4.25 – 4.5 %, awaiting new data before any potential cuts.
He emphasized that it is still early to confirm a rate cut, asserting that the authority is independent and will not succumb to political pressures.
2. Inflation Risks – Tariffs and Duties
He announced that new tariffs could fuel inflation, raising the core PCE inflation forecast for 2025 to 3.1%.
He pointed out that rising oil prices due to geopolitical tensions heighten concerns about supply shocks.
3. The Economy and Growth Outlook
The Fed has lowered its GDP growth forecast for the next three years by about 1.25 percentage points, anticipating moderate slowdown.
Despite the slowing growth, the labor market remains strong, achieving low unemployment rates without clear signs of sharp weakness.
5. Future Path and Fed Policy
He now expects two slight rate cuts of 0.25 points during 2025, and possibly leaning towards a more cautious stance if inflation rises or the economy is affected.