From CNBC: 2025-06-18 14:42:00

Federal Reserve Chair Jerome Powell discussed rising inflation projections, with expectations of core PCE increasing to 3.1% in 2025. The PCE price index was at 2.1% in April, with core PCE at 2.5%. Officials foresee slower economic growth, with GDP expanding by 1.4%. Powell attributed the inflation uptick to tariffs and geopolitical risks. Fed officials are cautious about lowering rates due to concerns over inflation acceleration and high oil prices. The dot-plot indicates a possible rate reduction to 3.9% by the end of 2025, showing a potential target range of 3.75% to 4%. Seven of the 19 participants prefer no cuts this year, with fewer cuts expected in 2026 and 2027.

Read more: Federal Reserve dot plot and economic projection June 2025