In his prepared text for the speech in Rhode Island, Powell said:Fed Chair: downside risks to employment shifted balance of risks, prompting last week's rate cutRate cut was another step toward a more neutral policy stanceTwo-sided risks mean there is no risk-free path; policy not on preset coursePolicy stance still modestly restrictive, well-positioned to respond to potential developmentsEconomic growth has moderated, downside risks to employment have risenInflation has risen, remains somewhat elevatedConsumer spending has slowed, businesses say uncertainty weighs on outlookLabor market less dynamic, somewhat softerUnusual and challenging decline in both supply and demand for workers12-month PCE inflation was probably 2.7% in August, core PCE 2.3%, both up from prior year and driven by goods pricesGoods price increases largely reflect tariffs, not broader price pressuresReasonable base case is that tariff-driven inflation effects will be relatively short-livedDisinflation for services continues; most long-term inflation expectations consistent with 2% goalTariff increases will likely show up as somewhat higher inflation over several quartersWill make sure one-time increase in prices does not become ongoing inflation problemPublic trust in economic, political institutions has been challenged, those in public service must focus tightly on critical missionsThe stocks are modestly lower with the NASDAQ down 81 points.. The USD has moved modestly higher. Yields are down but off lows This article was written by Greg Michalowski at investinglive.com.