Fed Chairman Powell stated that the continuously "changing" economic risks have given the Fed more convincing reasons to cut interest rates. These statements indicate that Powell has sided with the "dovish" faction in the Federal Open Market Committee responsible for setting interest rate policy, while signaling that he may support a 25 basis point cut at the next meeting in September. Although Powell acknowledged that the impact of the current trade war on consumer prices is now "clear," he implied that this impact is unlikely to be prolonged, and may just be a one-time shock that the central bank can overlook. He stated, "Considering the labor market is not particularly tight and is facing increasing downside risks, this outcome seems rather unlikely." He added, "Inflation faces upside risks, while employment faces downside risks; this is quite a challenging situation."