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Jerome Powell Speech Today LIVE: The United States Federal Reserve Chairman, Jerome Powell, in his first speech on the US economic outlook since the interest rate cut earlier this month, said that if the Fed cuts rates ‘too aggressively’ then it poses inflation risks in the US economy.

Jerome Powell addressed the Greater Providence Chamber of Commerce event in Warwick, Rhode Island, United States, on Tuesday, 23 September 2025.

The US dollar edged up from its lowest level in close to a week, with traders expecting two more U.S. interest rate cuts this year, even after Federal Reserve Chair Jerome Powell struck a cautious tone on further easing overnight, Reuters reported. The US dollar index, which measures the currency against six major rivals, added 0.1% to 97.335. The dollar added 0.1% to 147.77 yen. The euro lost 0.1% to $1.1800.

Asian markets traded lower on Wednesday, tracking overnight losses on Wall Street after cautious comments from the US Federal Reserve Chair Jerome Powell. Japan’s Nikkei 225 fell 0.08%, while the Topix declined 0.35%. South Korea’s Kospi dropped 0.35%, while the Kosdaq fell 0.39%. Hong Kong’s Hang Seng Index futures indicated a higher opening.

US stock market ended lower on Tuesday, breaking a three-session string of record closing highs, after comments from Federal Reserve Chair Jerome Powell.

The Dow Jones Industrial Average declined 88.76 points, or 0.19%, to 46,292.78, while the S&P 500 dropped 36.83 points, or 0.55%, to 6,656.92. The Nasdaq Composite closed 215.50 points, or 0.95%, lower at 22,573.47.

Chairman Jerome Powell highlighted that the US government is collecting a good amount of revenue from the tariffs imposed on world nations, domestically from the imports that import items from other nations to be manufactured in the United States.

“We're now collecting a good bit of revenue, government support, federal government putting a good chunk of revenue, $300-400 billion a year pace. The question is, who's paying for that? And the candidates that pay those tariffs would be the exporter, the foreign exporter, or someone on our shores,”

The Fed Chairman said that the retailers and importers are not passing along the impact of the tariffs to consumers, so the inflation rate has been hovering at a moderate stage.

“It's retailers and it's importers, and they're not passing along to consumers that much of the cost. So the actual effects on inflation have been quite modest in the authorities, it's a small amount,” said Powell.

Powell indicated that the US inflation is expected to return to its non-tariff levels by well into next year after the one-time increase from the Trump tariffs is over.

“Almost all the forecasts are for there to be a one-time pass through, which will go through the end of this year, well into next year, and then by the end of next year, a one-time increase from the tariffs will be done, and you'll get back to the non-tariff inflation levels much closer to our 2%,” said Chair Powell during the Q&A session.

Powell reflected back to the committee on keeping the key interest rates unchanged, based on the inflation in the nation which was above the target before the rate cut earlier this month.

“What we've done all year, this year is we've had policy, our policy rate has been tight because inflation has been above our targets, but the labor market was very solid,” said Powell.

As the investors focus on the next US Fed meeting next month, towards the end of October, Powell said that the committee will be reviewing data carefully to understand if the FOMC is moving in the right way.

“We'll be looking at the data very carefully, labor market data, growth data, inflation data, quantities of data that we get, and ask ourselves, is the policy in the right place?” said Powell, looking forward to the next US Federal Reserve meeting.

Fed Chair Powell said that the FOMC committee will carefully assess and manage the risk to make sure that the one-time increase in prices does not become an ongoing problem in the US economy.

“We will carefully assess and manage the risk of higher and overseas. Inflation will make sure that this one-time increase in prices does not become an ongoing problem,” said Powell.

Jerome Powell said that raising interest rates too quickly could allow inflation to remain at an elevated level.

“If we ease too aggressively, we could leave the inflation job unfinished and need to reverse course later to fully restore two-percent inflation,” said Powell in his speech.

Powell said that even though the US economy is witnessing substantial changes in trade and immigration policies, the nation shows ‘resilience’. He even said that the impact of the immigration policies, along with other trade dynamics, will take some time to reflect.

“The US economy is showing resilience in the midst of substantial changes in trade and immigration policies, as well as in fiscal, regulatory and geopolitical arenas. These policies are still emerging, and their longer-term implications will take some time to be seen,” said Powell in his speech.

Jerome Powell, responding to a question about the Boston Fed's Beige Book, a report document which is released eight times a year, said that the federal public policy of the US government is weighing in on the investments into the nation.

“Saw pretty modest growth, wage and price inflation at modest to moderate levels. The economy growing and uncertainty. Significant uncertainty about federal public policy is kind of weighing on investments and the decisions about investment in hiring, except in the area of the AI,” said Powell in his speech.

Fed Chair Powell talked about the economic outlook of the United States for the first time since the Federal Reserve's Federal Open Market Committee (FOMC) cut the key benchmark interest rate by 25 basis points on Wednesday, 17 September 2025.

US Federal Reserve's FOMC on Wednesday, 17 September 2025, decided to cut the key benchmark interest rate by 25 basis points and said that the committee will keep assessing incoming data, the evolving outlook, and the balance of risks to decide if more rate cuts are required.

Mint reported earlier that the FOMC committee voted in favour of a 25-basis-point rate cut by an 11:1 majority.

“The committee decided to lower the target range for the federal funds rate by 1/4 percentage point to 4 to 4-1/4 per cent. In considering additional adjustments to the target range for the federal funds rate, the committee will carefully assess incoming data, the evolving outlook, and the balance of risks,” said the US Fed in its official announcement.

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Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.

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