Powell reiterated his message that there is no risk-free path for policy given the challenges to both of the Fed’s goals for prices and employment. In explaining the rate cut, the Fed chair said it appears that most of the above-target inflation seen today is driven by tariffs, and he said the labor market faces significant downside risks.

Watch live as Federal Reserve Chair Jerome Powell delivers remarks at the Hoover Institution at Stanford University. Credit: Hoover Institution at Stanford University