ð” Powell Signals Patience on Rate Cuts At todayâs FOMC press conference, Fed Chair Jerome Powell struck a cautious tone: Inflation has accelerated and remains elevated, with rising goods prices the main driver this year. Tariff impacts have not yet been fully felt and are expected to push prices higher through 2026. GDP growth has slowed, largely due to weaker consumer spending, though unemployment remains low. Long-term inflation expectations remain anchored at 2%. Powell said he does not see a need for rapid rate cuts and noted today there was no broad support for a 50 bps reduction. Notably, he admitted: âI can no longer say the labor market is stable.â Still, the risks of runaway inflation are seen as lower than in April. The committee is split: 10 of 19 members expect
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