Powell’s Speech (Simulated Version)

Ladies and gentlemen, thank you for joining us today.

The U.S. economy has shown resilience in recent months, but important shifts are underway.

Labor Market:

Job growth has slowed notably. July’s figures came in well below earlier levels, signaling that the labor market is gradually moving back toward balance. This is an important development that warrants close attention.

Inflation:

Inflation has eased significantly from its peak and now stands near 2.7%. While still above our long-term goal of 2%, the trend is encouraging. Price pressures are moderating, though we recognize inflation has not yet fully returned to target.

At the same time, recent wholesale price data showed an uptick, reminding us that risks remain. We must remain cautious and avoid declaring victory too early.

Policy Outlook:

At our September meeting, the Committee will carefully evaluate whether a reduction in policy interest rates is appropriate. Rate cuts are on the table, but the scale and timing will depend on incoming data. We will not pre-commit to a specific path.

Let me emphasize: the Federal Reserve’s decisions are guided by data — not by short-term market swings or political considerations. Our responsibility is to balance our dual mandate of maximum employment and price stability.

We understand the uncertainty that families and businesses are facing. The Federal Reserve remains prepared to act as needed to safeguard long-term stability and support the healthy growth of the U.S. economy.

Thank you.