Powell Says Inflation Risk Now Lower Than in April

Powell Says Inflation Risk Now Lower Than in April

Federal Reserve Chair Jerome Powell noted that the risk of rising inflation has decreased compared to earlier this year.

Fact Check
In April 2025, the evidence shows Chairman Powell was actively warning about new and 'elevated' inflation risks, specifically stemming from tariffs. By August 2025, his rhetoric had shifted to discussing a change in the 'balance of risks' and he began signaling potential interest rate cuts. Such signals are typically made when the perceived risk of high inflation has decreased, indicating his assessment of inflation risk was lower in August than it was in April.
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Terms & Concepts
  • Inflation: The rate at which the general level of prices for goods and services rises, eroding purchasing power.
  • Federal Reserve: The central banking system of the United States, responsible for setting monetary policy, including interest rates and inflation control.