The Federal Reserve faces a daunting challenge in seeking to guide the U.S. economy clear of stagflation, Chair Jerome Powell said following the central bank’s September 2025 policy meeting, warning there is “no risk-free path” ahead for the central bank. The frank admission highlights how policymakers are navigating an environment marked by persistent inflation and slowing economic growth, with significant risks on every side.

Jerome Powell delivered his remarks as the Federal Open Market Committee announced its first interest rate cut in nine months, lowering the federal funds rate by a quarter-point to a range of 4.0% to 4.25% . The FOMC statement explained that “uncertainty about the economic outlook remains elevated. The Committee is attentive to the risks to both sides of its du

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