Emre Yumlu 
Federal Reserve Chair Jerome Powell took center stage at the European Central Bank’s forum with his recent remarks. According to Powell, the U.S. economy remains in a fairly healthy condition. He noted that headline inflation stands at 2.3%, while core inflation is around 2.7%, describing this outlook as “behaving as expected and hoped.”
Cautious Waiting Continues
Powell emphasized that the impacts of tariffs have not yet fully materialized, which is why the Fed is taking a wait-and-see approach. “We went on hold when we saw the size of the tariffs. We expect higher readings throughout the summer. The prudent move is to wait and gather more data,” he said, highlighting the importance of a data-driven strategy.
Powell: We’re Seeing a Cooling in the Labor Market
He also pointed out a gradual cooling in the labor market, which serves as a key indicator in balancing efforts to control inflation.
Powell: Majority of Fed Members Expect Rate Cuts This Year
The Fed Chair revealed that a solid majority of FED members agree that another interest rate cut would be appropriate before the end of the year. “We are not ruling out any meeting. It’s not possible to say July is too soon; decisions will fully depend on the data,” Powell stated.
Will Powell Continue as FED Chair?
Another topic that has been on the agenda for a long time is the FED chair. When asked about the great tension between Powell and Trump, Powell responded as follows:
“I have nothing to say to you about remaining as Fed Chair.”
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