Federal Reserve Chair Jerome Powell stated that the economy is in a “solid position,” but acknowledged difficulties in forecasting the impact of tariffs. The Dow Jones Industrial Average briefly dipped into negative territory as investors digested his comments, before closing flat.
Powell expressed uncertainty about predicting inflationary outcomes from tariffs, emphasizing the need for concrete data. This sentiment echoed in the Fed’s statement, which noted that while economic outlook uncertainty has diminished, it remains elevated.
Despite the mixed message, stocks showed resilience, with the S&P 500 and Nasdaq indices seeing minor gains. The Federal Reserve held interest rates steady, matching Wall Street expectations. Analysts at Bankrate see this as a positive sign, noting that the Fed’s statement suggests uncertainties have not worsened further.
Notably, Powell declined to comment on whether he will remain on the Fed’s board of governors after his term ends in 2026, amidst tension with President Donald Trump.
Source: https://edition.cnn.com/business/live-news/federal-reserve-interest-rate-06-18-25