#FedOfficialsSpeak
Here's a summary of recent statements by Federal Reserve officials as of late September 2025:
Key Themes from Fed Officials:
Rate Cuts & Economic Balance
The Fed cut interest rates by 25 basis points (0.25%) in September 2025, marking the first cut this year.
Jerome Powell emphasized the "challenging situation" of balancing rising inflation risks (partly from tariffs) and a slowing labor market (payroll growth averaged below 30,000/month in summer 2025).
Officials project two additional quarter-point cuts in 2025 (October and December), though views are split internally.
Diverging Views Among Officials
Some officials (e.g., Stephen Miran) argue for aggressive rate cuts to protect the labor market.
Others caution against overreacting to inflation, which remains 0.9% above the Fed’s 2% target.
Powell described the inflation outlook as having "high uncertainty," stressing the need to prevent temporary price spikes from becoming entrenched.
Labor Market Concerns
Job growth has slowed sharply, with revisions showing ~1 million fewer jobs created in the year through March 2025 compared to initial estimates.
Powell acknowledged downside risks to employment, shifting the Fed’s focus toward labor market stability.
Tariff Inflation Debate
Powell called the administration’s tariff-driven inflation a "reasonable base case" for being temporary but warned of risks if it persists.
Regional Fed officials (e.g., some Reserve Bank presidents) urged caution on rate cuts until inflation trends clarify.
