Overview

• Powell described an unusual balance in the jobs market, with both labor supply and demand slowing, and warned conditions could worsen quickly.
• He cautioned that tariffs could drive more persistent price pressure and sketched a recalibration away from the Fed’s 2020 framework.
• U.S. stocks rallied following the remarks, with the Nasdaq and S&P 500 rising about 2 percent.
• The policy rate remains at 4.25–4.50 percent, with the next decision scheduled for the Sept. 16–17 FOMC meeting.
• During the speech, President Trump threatened to fire Fed Governor Lisa Cook as the White House pressed for lower rates, and Powell reiterated that decisions will be guided by data.