Powell hints that the Federal Reserve (FED) may cut interest rates in September, concerns about stagflation persist.

[Block Rhythm] On June 19, it was reported that BRN Chief Analyst Valentin Fournier stated that despite easing inflation and reduced tariff concerns, the slowing growth of the U.S. economy has raised worries about stagflation. In the press conference following the meeting, The Federal Reserve (FED) Chairman Jerome Powell expressed confidence in the “trend of falling inflation,” adopting a dovish tone, but he also pointed out that strong job growth and resilient consumer spending provide policymakers with the space to maintain higher Intrerest Rates.

The market is currently looking towards September as the earliest possible time for a rate cut. “Due to the lack of urgency for a rate cut, The Federal Reserve (FED) reaffirmed its ‘wait-and-see’ stance, pushing the market’s expectations for the first rate cut to no earlier than September.”