Powell Reiterates No Risk-Free Path for Fed Amid Dual Threats

Federal Reserve Chair Jerome Powell said the outlooks for the labor market and inflation face risks, reiterating his view that policymakers likely have a difficult road ahead as they weigh further interest-rate cuts.

“Near-term risks to inflation are tilted to the upside and risks to employment to the downside — a challenging situation,” Powell said Tuesday in remarks to the Greater Providence Chamber of Commerce in Rhode Island. “Two-sided risks mean that there is no risk-free path.”

Powell offered no hints on whether he might support a rate cut at the Fed’s next meeting, in October.

He did, however, address ...