Powell stresses Fed's commitment to keeping inflation in check, uncertain future rate cuts

From CNBC: 2025-06-24 08:33:00

Federal Reserve Chair Jerome Powell emphasized the central bank’s commitment to keeping inflation in check and expects policymakers to stay on hold until the impact of tariffs is clearer. Powell will present his comments to congressional committees while navigating criticism from President Trump. The Fed is cautious about adjusting policy amid uncertainty.

Powell discussed economic growth, full employment, and above-target inflation. He expects inflation to rise to 2.3% in May, with core inflation at 2.6%. Powell emphasized the Fed’s need to balance full employment and low inflation, aiming to prevent a one-time price increase from becoming an ongoing issue. The FOMC voted to keep rates steady.

The FOMC’s “dot plot” grid showed a split among members regarding future rate cuts. Market pricing indicates a low probability of a cut in July, with more expectation for a cut in September. Some FOMC voters favor a cut in July if inflation remains in check. Powell and the FOMC are monitoring inflation data closely before making any adjustments.

Read more: Powell emphasizes Fed’s obligation to prevent ‘ongoing inflation problem’ despite Trump criticism