Trump: Fed Holds Interest Rates Steady, That's Fine

June 18 — Federal Reserve Chair Powell said Wednesday that he wants U.S. financial markets to price securities based on their own assessment of the economy, rather than basing valuations on their expectations for how central bank officials will interpret economic data. “The more the market focuses on actual shifts in the economy, the better it can judge for itself which data points are most important, which are less critical, and form its own view of what the most likely economic outcome will be,” Powell stated. He added that this approach would avoid a situation where “financial markets just reflect back what we’ve said.”

On June 18, Federal Reserve Chair Jerome Powell said none of the 19 participants in the latest policy meeting viewed monetary policy tightening as appropriate at this time. (Xinhua News)

On June 18th, Federal Reserve Chair Powell stated, “We’ve now abandoned forward guidance and cannot provide any guidance about our next steps. The dot plot is drawn in pencil and can be erased entirely. We will conduct a comprehensive review of our communication practices—including press conferences, dot plots, and meeting schedules—by the end of this year,” according to FXStreet.

June 18 – Federal Reserve Chair Powell said the central bank’s priority is getting monetary policy right as inflation runs well above the 2% target. He noted recent history doesn’t signal an imminent inflation problem, and no updated Summary of Economic Projections was released today. Powell also added that forward guidance isn’t well-suited for the current economic situation. (Kryptonite)

June 18: The Federal Reserve’s latest dot plot data shows that among its 19 policymakers, 18 submitted interest rate projections for 2026 and 2027, while only 17 provided forecasts for 2028. Ahead of the dot plot’s release, the market had widely anticipated that newly appointed Fed Chair Jerome Powell would not submit his own dot plot forecasts. It remains unclear which individual Fed official joined Powell in skipping a 2028 dot plot submission, per FXStreet.

**June 18 (FXStreet) –** Foreign media analysis released this date signals a notable shift in Federal Reserve policymakers’ stances: nearly half no longer believe holding interest rates steady will be sufficient to push inflation back to the Fed’s 2% target, a view driven largely by the sharp spike in oil prices following the Iran war. The central bank’s latest “dot plot” (its individual interest rate path projections) reveals a dramatic flip in internal debate. Previously, officials focused on how long to keep rates on hold before cutting them; now, growing concerns about additional rate hikes dominate—with some policymakers even convinced the Fed will need to lift borrowing costs again. Forecasts published alongside the dot plot show Fed officials have grown more pessimistic about inflation since March, a clear reflection of the war-fueled jump in price pressures. Median projections put the headline PCE price index at 3.6% by year-end, up from March’s 2.7% forecast; core PCE inflat