Powell: Job Risks Prompt Fed Cut; Dissent Emerges

After last week’s 25‑basis‑point rate cut, Federal Reserve Chair Jerome Powell said rising downside risks to employment have become the central concern, prompting a cautious, data‑dependent approach. He warned there is no risk‑free path — cutting too aggressively could reignite inflation while keeping policy restrictive too long could unnecessarily soften jobs — and described policy as modestly restrictive. Powell did not promise further cuts, saying future moves will depend on incoming inflation and employment data and pushing back on market bets and White House pressure for quicker easing. Dissent is emerging inside the Fed, with Vice Chair Michelle Bowman and some Trump‑appointed officials urging faster, larger reductions. Regional officials such as Atlanta Fed President Raphael Bostic said the outlook is complicated, noting tariff‑driven goods‑price pressure could push modest price increases into early 2026; Fed projections still show core inflation above target and the median of policymakers expects quarter‑point cuts in October and December with only modest easing in 2025.