Fed Chair Jay Powell: Calling the Fed Political Is a ‘Cheap Shot’ (Full Remarks)

Federal Reserve Chair Jerome Powell said the outlooks for the labor market and inflation face risks, reiterating his view that policymakers likely have a difficult road ahead as they weigh further interest-rate cuts.

“Near-term risks to inflation are tilted to the upside and risks to employment to the downside — a challenging situation,” Powell said Tuesday in remarks to the Greater Providence Chamber of Commerce in Rhode Island. “Two-sided risks mean that there is no risk-free path.”

Powell offered no hints on whether he might support a rate cut at the Fed’s next meeting, in October. He did, however, address the tense political environment surrounding the Fed during a question and answer session following his speech, and denied accusations the central bank has acted politically in its policy decisions: “We’re looking at what’s the best thing for the people that we serve,” he said. “Truth is mostly people who are calling us political — it’s just a cheap shot.”

President Donald Trump — in addition to pressuring the Fed for lower interest rates — has been among Republicans who have accused Powell of making rate decisions that favored Democrats. Powell’s prepared remarks hewed closely to those he made in a press conference on Sept. 17 after Fed policymakers lowered the central bank’s benchmark interest rate to a range of 4%-4.25%, the first reduction of 2025. Powell at the press conference described the move as a “risk-management cut” aimed at responding to growing warning signs in the labor market.

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