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FOMC Policy Statement
At the conclusion of the June 18th FOMC Meeting, to the surprise of no one, the Fed announced that the Fed Funds Rate would remain in the range of 4.25% - 4.50%
Chair Powell Blames Increase In SEP Inflation Expectations On Tariffs
Summary
- The Fed held rates steady for a fourth meeting, citing elevated inflation and rising unemployment projections, signaling stagflation concerns.
- Despite a median projection of two rate cuts in 2025, more FOMC participants now expect fewer cuts, reflecting a more hawkish stance.
- Chair Powell emphasized tariff-driven inflation as a key reason for delaying rate cuts, indirectly critiquing current trade policies.
- President Trump’s escalating attacks on Powell for not cutting rates are politically charged, but the Fed remains focused on data and inflation risks.
Michael Gray has devoted his career to following the capital markets and managing fixed income assets. He founded Gray Capital Management LLC and before that was Head of Taxable Fixed Income at Fidelity Investments. Michael has an MBA in Finance from Wharton and a BA in Economics from Union College.
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