Overview

• In Providence, Jerome Powell said the Fed "never, jamais" considers political consequences in its decisions, pushing back after months of pressure from President Donald Trump for faster cuts.
• Powell described a difficult balance between still-elevated inflation and signs of labor-market weakness, warning there is no risk-free path.
• Treasury yields dipped following his remarks, with the 10-year falling to roughly 4.11% as investors recalibrated the outlook.
• Policy views diverged across the Fed: Governor Michelle Bowman called for decisive cuts to aid a weakening jobs market, Chicago Fed President Austan Goolsbee urged caution, and Director Stephen Miran said policy remains too tight.
• Powell said decisions will weigh multiple scenarios and current data, while longer-run economic outcomes rest more with Congress and the private sector than with the central bank.