Fed Chair Powell Signals No Urgency to Cut Interest Rates by Amit Gupta, Kedia Advisory
* Powell reiterates cautious stance on rate cuts in Congress testimony.
* Fed keeps interest rate steady at 4.25%–4.50% for fourth straight meeting.
* FOMC awaits clarity on tariff impact before altering monetary policy.
* Fed still projects two rate cuts in 2025; one small cut each in 2026, 2027.
* 2025 GDP growth forecast downgraded to 1.4% from 1.7% earlier.
Federal Reserve Chair Jerome Powell reaffirmed there’s no immediate urgency to cut interest rates, aligning with previous cautious commentary. Speaking before Congress, Powell emphasized the need to assess the full economic impact of proposed US tariffs. The Fed held rates steady at 4.25%–4.50% for the fourth consecutive meeting in June 2025, consistent with market expectations. The FOMC still expects two rate cuts this year but only minor adjustments beyond that. The Fed also revised its GDP growth projections downward, with 2025 now expected to grow at just 1.4%, compared to 1.7% in March.
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