Overview

• Following last week’s first cut of the year to 4.1% from 4.3%, Powell offered no timetable for additional moves and warned that cutting too aggressively could require reversing course.
• He described a complicated backdrop of upside risks to prices and downside risks to employment and emphasized preserving flexibility.
• Divisions inside the Fed were on display as Stephen Miran and Governor Michelle Bowman, both appointed by President Trump, called for faster and larger reductions.
• Chicago Fed President Austan Goolsbee urged restraint, noting inflation remains above the 2% target.
• Powell estimated tariffs have added about 0.3 to 0.4 percentage points to PCE inflation, saying U.S. companies are absorbing most costs with smaller‑than‑expected pass‑through to consumers.