During his post-meeting press conference, U.S. Federal Reserve Chair Jerome Powell highlighted concerns about tariffs and their potential to drive inflation higher. While recent economic data has been positive, Powell warned that the full effects of tariffs have yet to be felt, as they take time to move through the distribution chain. In May, the U.S. added 139,000 jobs, and consumer sentiment was stronger than expected. However, Powell acknowledged that economic growth will eventually slow, raising the possibility of stagflation. The Fed kept interest rates between 4.25%-4.5% and signaled two rate cuts might occur by the end of 2025. Updated forecasts indicate inflation could exceed 3%, while growth is expected to slow to 1.4%. Meanwhile, U.S. markets were flat, and Asia-Pacific markets declined, with Hong Kong’s Hang Seng Index dropping by 2%.
— new from CNBC
