Small font size A Larger text size A Largest text size A

Fed's Powell cautions little conviction in forecasted rate outlook

BY Reuters | ECONOMIC | 06/18/25 03:03 PM EDT

By Michael S. Derby

June 18 (Reuters) - Federal Reserve Chairman Jerome Powell cautioned on Wednesday not to place too much stock in the central bank's interest rate forecasts, which could change based on incoming data, especially on the inflation front.

On a day when the Fed reiterated its expectation that its short-term interest rate target will be lowered twice this year, Powell said at a press conference following Fed's policy meeting that "no one holds these...rate paths with a great deal of conviction, and everyone would agree that they're all going to be data dependent."

Powell also said, "Every outside forecaster and the Fed is saying, is that we expect a meaningful amount of inflation to arrive in coming months, and we have to take that into account."

(Reporting by Michael S. Derby and Dan Burns; Editing by Leslie Adler)

More Fixed Income News

TREASURIES-US yields rise on tariff concerns as market awaits auctions BY Reuters |TREASURY 10:22 AM EDT
Canada's Ivey PMI rises to four-month high in June BY Reuters |ECONOMIC 10:12 AM EDT
Factbox-Major brokerages retain rate cut expectations after Fed keeps rates steady BY Reuters |ECONOMIC 10:10 AM EDT
Truv Now Offers Automated Asset Verification Through Freddie Mac Loan Product Advisor? as an AIM Service Provider BY PR Newswire |AGENCY 10:00 AM EDT

All Fixed Income News

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article