The end of Jerome Powell’s term as Fed chair will give President Trump his biggest opportunity yet to reshape the central bank.

Federal Reserve Chair Jerome Powell is giving remarks Wednesday afternoon after the nation’s central bank made its final interest rate decision of 2025. The committee responsible for setting

Federal Reserve Chair Jerome Powell said the three rate cuts this year have put the central bank's benchmark interest rate closer to a "neutral" level, meaning it is neither boosting nor holding back the economy.

Powell reiterated his message that there is no risk-free path for policy given the challenges to both of the Fed’s goals for prices and employment. In explaining the rate cut, the Fed chair said it appears that most of the above-target inflation seen today is driven by tariffs, and he said the labor market faces significant downside risks.

Federal Reserve Chair Jerome Powell admitted on Wednesday that there is still no "risk-free" path for the central bank as it seeks to bring down stubbornly high inflation while also supporting an increasingly creaky labor market.

"It will be difficult for Powell to send a credibly hawkish signal at the press conference," analysts at Bank of America said in a note.

The chair of the central bank is dealing with internal divisions while being besieged by President Trump and front-runners jockeying to replace him.

President Donald Trump has set up a battle of the Kevins in the race to succeed Jerome Powell as Fed chair in 2026. “I think you have Kevin and Kevin,” Trump, 79, told The Wall Street Journal on Friday. “They’re both—I think the two Kevins are great. I think there are a couple of other people that are great.”