Overview

• Jerome Powell said the balance between upside inflation risks and downside labor risks could justify an adjustment to policy, his clearest opening to easing this cycle.
• He warned that tariff effects on consumer prices are already visible and may build in the months ahead, adding uncertainty to the inflation outlook.
• Powell described a weakening labor market in a fragile equilibrium with the risk of faster layoffs, noting factors on both demand and labor supply.
• Financial markets rallied on the remarks, with analysts largely pricing a 25‑basis‑point reduction at the September 16–17 FOMC meeting.
• President Donald Trump said he would fire Governor Lisa Cook if she does not resign after a DOJ letter signed by Ed Martin urged her removal, allegations Cook rejects as she refuses to step down, and her departure would create a board vacancy the White House could fill.