Yigit Taha OZTURK 
On June 18, the FED decided to leave interest rates unchanged, in line with market expectations. Following the announcement, attention quickly turned to Powell’s remarks. His comments made it clear that a shift toward rate cuts is not imminent.
Tariffs And Uncertainty Weigh On Policy Decisions
Throughout the speech, Powell emphasized the importance of observing the effects of recently implemented tariffs before making policy moves. “We don’t want to act before seeing their impact.” he said. “Without the tariffs, inflation would likely have declined further.”
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He also acknowledged that “uncertainty has increased,” and in such an environment, “nobody wants to rush down the rate cut path.”
Policy In A Good Place, Labor Market Still Solid
Powell stated that monetary policy must be forward-looking and currently stands in a strong position. Regarding the labor market, he noted, “The labor market is not crying out for a rate cut.”
He also pointed out that near-term inflation expectations have risen due to tariffs and reminded that “inflation remains above our 2% target.” In his words, “Waiting a few more months might lead to smarter decisions.”
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