This article has been translated from English to Gen Z Slang.
Yo, the FOMC keeping it chill, didn't budge the rates from 4.25-4.50% for the fourth time running, but they threw some curveballs predicting slower growth and higher inflation. Basically, they're like, "We're gonna take it slow on the money moves." 💸
Key Tea from the June FOMC Statement
- Same old, same old with the rates at 4.25-4.50% for four times straight, no surprise there.
- GDP getting a downgrade - they now predict a 1.4% growth for 2025, down from 1.7%. Ouch. 📉
- Inflation's looking spicier than before, with a 3.1% forecast for 2025, up from 2.8%. Inflation fairy is working overtime! 🔥
- Jobless rate getting a slight nudge up to 4.5% by 2025’s end, from 4.4%. Not a biggie though.
- Acknowledging the vibes but calming down - they say uncertainty's chilling a bit but vibes are still intense.
- Tariff drama ain't over - Powell spilling the tea on firms passing on them costs to us, the squad. 😬
- Dot plot drama says two 25bp cuts might still happen before we wrap the year. 🤷♂️
Link to official FOMC Statement for June 2025
Those quarterly vibes from FOMC Economic Projections say the squad ain't feeling too optimistic, cutting down 2025 GDP to 1.4% and bumping inflation to 3.1%. Looks like chillin' ain't an option right now. 😮💨
However, the dot plot reveals they still got hope for them two rate cuts by year-end, sticking to the game plan from before. 🤞
Link to FOMC Economic Projections (June 2025)
During his chit-chat sesh, the big guy Jerome Powell was all "let's not rush those rate cuts." He’s like, we good with unemployment low-key stable, but yo, inflation’s still wildin’ above our 2% target. ⚖️
Powell’s dropping some truth bombs on inflation going up thanks to tariffs, and businesses thinking of making us cough up the cash. Price tags ain't coming down anytime soon, fam! 🛒💸
Powell hinted the Fed’s gonna "hang tight before making any moves," suggesting they’re in no rush to cut rates despite all the economic hoopla. The CME FedWatch tool is saying there's a huge 89.7% chance rates won't change next month. ✌️🤓
Link to June 2025 FOMC Press Conference
Market Reactions
U.S. Dollar vs. Major Currencies: 5-min
Overlay of USD vs. Major Currencies Chart by TradingView
Currency hustlers thought the Fed's words were a smidge more serious than expected. 💼 The U.S. dollar, which was casually climbing, got hit with a reality check at first, then flexed across the board as Powell wrapped up.
Dollar's glow-up lasted about an hour post-Powell talk before it started chillin’ sideways, ending the day stronger against the main squad. The euro took a 0.26% L against the dollar, while the dollar caught a 0.17% W against the Aussie dollar and 0.15% against the Japanese yen. 🌊
Dollar's strength probs shows folks are starting to reckon that the Fed’s chillin' on them rate adjustments might take a hot minute longer than we'd thought. Powell's vibe of waiting “a couple of months” for “smarter moves” on rates kinda rules out any action in July and maybe even puts it on snooze till fall. 🍂⌛
