Overview

• Powell said the balance of risks has shifted, with inflation risks higher and employment risks lower, signaling potential policy easing.
• He noted tariff-driven price increases are already visible and could accumulate over the coming months with uncertain timing and magnitude.
• Stocks jumped and the dollar slipped as traders priced a 25 basis-point cut next month and saw scope for additional reductions this year.
• A Justice Department letter signed by Ed Martin urged Powell to remove Governor Lisa Cook, who rejects fraud allegations and says she will not resign.
• President Trump threatened to fire Cook, while dissidents including Stephen Miran, Michelle Bowman and Christopher Waller press for faster, larger cuts that could split upcoming votes.