US Fed Chair Powell Warns on Inflation Risks Following Rate Cut

Federal Reserve Chairman Jerome Powell delivered a cautionary message on inflation risks during his address to the Greater Providence Chamber of Commerce in Warwick, Rhode Island. This marks his first major public appearance since the Fed's decision to cut interest rates by 25 basis points on September 17, 2025.

The rate cut, while modest, signals the central bank's growing concern over economic headwinds. Powell emphasized that inflationary pressures remain a key challenge, despite recent monetary easing. His remarks suggest a delicate balancing act between stimulating growth and containing price stability risks.

Market participants will scrutinize these developments for implications across asset classes, including cryptocurrencies. Historically, accommodative monetary policy has served as tailwind for digital assets, though inflation concerns may introduce volatility.