Fed Powell: The U.S. economy is in a pretty good shape, and inflation is in line with expectations and hopes if tariffs are ignored. We expect inflation numbers to rise in the summer, and as long as the U.S. economy is solid, the prudent approach is to wait.
Most FOMC members believe that another rate cut later this year is appropriate, and it is uncertain whether it is too early to consider a rate cut in July. We are adopting a moderate tightening policy at the current level.
We will discuss communication strategies and various scenario plans in the fall. 2025 is undoubtedly an important year, and many changes will occur in the market. Regarding Trump's attacks, I am only very focused on doing my job well.
Will not rule out any meeting (the possibility of action), it will depend on the data.
During Powell's speech, CME's probability of no rate cut by the Fed in July dropped from 80% to 76%.
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