The president of the Fed, Powell, says that the increase in inflation and the slow hiring pose “challenging situation”

The president of the Federal Reserve, Jerome Powell, warned a recent increase in inflation, together with a deceleration of hiring, raises a “challenging situation” for central bankers, since its goal is to direct the economy of the United States through a “turbulent period.”

The Fed, which chose to reduce interest rates last week, is guided by a double mandate to maintain inflation under control and maximize employment. Speaking in the Chamber of Commerce of the Great Providence, in Providence, Rhode Island, on Tuesday, Powell said that a strong copy of hiring time during the summer had changed the balance of risks towards a greater concern about the labor market.

“The downward risks for employment have increased,” Powell said.

The comments occurred days after the Fed reduced interest rates for the first time this year in an effort to increase hiring. The Federal Open Market Committee (FOMC), a policy formulation agency in the Fed, projected two additional point -to -point fence cuts in the rest of 2025.

Even so, Powell expressed concern about the trajectory of prices, to say that “uncertainty around the path of inflation remains high.”

“The risk of two sides means that there is a risk -free route,” Powell added.

Last week, the Central Bank delivered such a long policy by President Donald Trump, although the size of the tariff cut did not reach a greater preferred reduction by Trump.

The announcement marked a point of inflammation in the pressure campaign of the months aimed at the Fed by Trump.

In recent weeks, Trump moved to say goodbye to a member of the Board of Governors of the Fed and ensure the confirmation of the Senate for another. Both officials were among the 12 policy formulators who issued votes on the interest rate decision, although their status was still uncertain days before the Fed meeting.

The race to remodel to the Fed occurs after Trump criticized months against the Central Bank and Powell for decline to pay attention to his lower interest rates. Last week, Powell said the Fed is still “very committed to maintaining our independence.”

Stephen Miran, an economic advisor to the White House who joined the Fed Board last week, the lonely dissident vote issued. Look voted in favor of a higher semicircular fees cut.

Recently, Trump moved to the member of the Fire Board, Lisa Cook, who sued Trump for her attempt to expulsion, saying that the decision violated her legal protections as an employee of the independent federal agency. Trump said he eliminated Cook for accusations of mortgage fraud against him, what Cook has denied.

Last week, a federal judge issued a preliminary court order that required that the Fed allows Cook to continue serving in his role as governor of the Federal Reserve system as his lawsuit moves through the courts. The Trump administration appealed the ruling before the Supreme Court.

In recent months, the economy has suffered a strong deceleration of hiring together with an increase in inflation, establishing the conditions of what economists call “stagflation.”

Economic conditions have put policy formulators fed in a link. If the Fed increases interest rates as a means to protect against inflation induced by the rate, run the risk of bowing to the economy in a recession. On the other hand, if the Fed reduces rates to stimulate the economy in the face of a procurement of hiring, threatens to increase spending and worsen inflation.