US Fed Chair Jerome Powell stays uncomfortably on the sidelines

There is a very strong argument that absent the tariff-induced inflation, the Fed would be cutting rates now, writes KPMG US Chief Economist Diane Swonk.

The United States (US) Federal Open Market Committee (FOMC) – the policy setting arm of the Federal Reserve – unanimously voted to keep rates unchanged, with the fed funds target in the 4.25 percent - 4.5 percent range at its June meeting. The statement following the report was little changed. The Fed removed the part of the statement that said the risks for both inflation and unemployment were to the upside. Many saw that change as a more dovish stance by the Fed. That ignore...

Sign in below or register now to read the full article

Authors: Diane Swonk

Published Date: 19 June 2025