Jerome Powell, the Federal Reserve chair, is managing a high-stakes balancing act as he grapples with a cooling labor market, rising inflation and White House pressure to cut interest rates.
Jerome H. Powell, the chair of the Federal Reserve, is on the cusp of taking a big gamble with the U.S. economy.
He and his colleagues must soon decide which of two significant risks takes priority now that the Fed’s goals of low, stable inflation and high employment are in tension with each other. Inflation, still too high for the Fed’s liking, is rising again as businesses navigate President Trump’s global tariffs. The labor market also looks increasingly fragile, with monthly jobs growth slowing nearly to a halt this summer.
