Powell says slowing labor market prompted rate cut, sees 'challenging situation' ahead
- Federal Reserve Chair Jerome Powell spoke on September 23, 2025, in Warwick, Rhode Island, warning that aggressive rate cuts could worsen inflation risks.
- His remarks followed the Fed’s September 17 rate cut of 25 basis points amid rising inflation and a labor market slowdown shifting risks.
- Powell highlighted an unusual slowdown in both supply and demand for workers and said elevated stock prices are driving inflation slightly.
- He warned that moving too quickly to ease policies might result in incomplete progress against inflation, potentially requiring a later policy reversal, highlighting the need to carefully balance risks.
- Powell indicated the Fed will carefully assess incoming data and risks, with two additional quarter-point rate cuts projected for 2025 to support employment.
193 Articles
193 Articles
Powell stresses ‘challenging situation’ for Fed as rate debate intensifies - Hawaii Tribune-Herald
Jerome Powell, the chair of the Federal Reserve, on Tuesday underscored the “challenging situation” confronting the central bank as it contended with higher inflation and a weaker labor market, even as he signaled his support for further interest rate reductions.

Powell says Fed will go cautiously with rate cuts
WASHINGTON — Federal Reserve Chair Jerome Powell signaled a cautious approach Tuesday to future interest rate cuts, in sharp contrast with other Fed officials this week who called for a more urgent approach.
Fed’s Jerome Powell Signals Cautious Approach To Future Rate Cuts
by Ireland Owens at CDN - Federal Reserve Chairman Jerome Powell on Tuesday signaled that he is taking a cautious stance on future interest rate cuts. Powell said during a speech at an event in Rhode Island that the Fed is presently facing a “challenging situation” due to inflation risks and lower employment. His comments come after the Fed announced last … Click to read the rest HERE-> Fed’s Jerome Powell Signals Cautious Approach To Future Rat…
US Federal Reserve President Jerome Powell warned Tuesday that cutting interest rates too fast could allow inflation to remain high, but stressed that the central bank faces a double challenge for the future. “There is no risk-free path,” said the president of the central bank at an event in Rhode Island. “If we relax too aggressively, we run the risk of not reaching our inflation target and of having to reverse the course later to completely pu…
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