On June 2, 2025, local time, in Washington, D.C., United States, Federal Reserve Chairman Jerome Powell spoke at the 75th anniversary meeting of the Federal Reserve's International Finance Division. Visual China Image

On June 2nd local time, Federal Reserve Chairman Powell stated at the 75th anniversary symposium of the Division of International Finance that during this period of high uncertainty, it is crucial for the Division to develop new tools and analytical frameworks. This work can help the Federal Reserve understand the impact of quantitative uncertainty shocks.

Powell stated that, against the backdrop of the increasing importance of global trade and capital flows, the International Finance Division has helped compile data on international capital movements and has spent decades studying their impact on international trade, the U.S. economy, and foreign economies. Understanding these complex and interconnected networks is crucial for the Federal Reserve's forecasting of employment and inflation paths.

Powell believes that understanding the practices of other countries' governments and central banks, as well as their impact on the U.S. economy and financial markets, is crucial for the Federal Reserve. The Bretton Woods system, which collapsed in the 1970s, fundamentally changed the behavior of monetary policy, and policymakers must understand the potential instability of the dollar's impact on American households and businesses.

Powell did not comment on the inflation situation, the job market, or monetary policy.

Five days before delivering this speech, Powell had just completed his first meeting with U.S. President Trump during Trump's term. On May 29th, local time, at Trump's invitation, Powell met with Trump at the White House to discuss economic development issues including growth, employment, and inflation.

The Federal Reserve said in a press release that Powell did not discuss his expectations for monetary policy, but emphasized that the policy path will depend entirely on upcoming economic information, as well as its implications for the outlook, and decisions will be made based on prudent, objective, and non-partisan factors.