๐ถ Inflation Still Above Target
๐น Powell stressed that inflation is not yet at the Fedโs 2% goal, requiring continued vigilance.
๐ถ Labor Market Remains Strong
๐ท Employment is stable with low unemployment and steady job growth, supporting the economy.
๐ถ Economic Growth Has Slowed
๐ Powell acknowledged a moderation in economic activity in the first half of 2025.
๐ถ Policy Is Restrictive but Balanced
โ๏ธ Current rates (4.25%โ4.50%) are sufficiently tight to curb inflation but not harming growth.
๐ถ Tariffs Add Uncertainty
๐ฆ New tariffs have put upward pressure on prices, but their overall impact on inflation is still unclear.
๐ถ September Decision Still Open
๐๏ธ Powell confirmed no decision yet for September; future policy will be data-dependent.
๐ถ Rare Dissent Noted
โก Two Fed Governors dissented, favoring a 25 bps rate cut, showing policy debate inside the Fed.
๐ก Bottom Line: The Fed stays cautious, inflation-focused, and flexible while monitoring labor market strength, tariffs, and incoming data ahead of the September meeting.
