WASHINGTON (AP) — Federal Reserve Chair Jerome Powell on Tuesday signaled a cautious approach to future interest rate cuts, in sharp contrast with other Fed officials this week who have called for a more urgent approach.
In remarks in Providence, Rhode Island, Powell noted that there are risks to both of the Fed's goals of seeking maximum employment and stable prices. But with the unemployment rate rising, he noted, the Fed agreed to cut its key rate last week. Yet he did not signal any further cuts on the horizon.
If the Fed were to cut rates “too aggressively,” Powell said, “we could leave the inflation job unfinished and need to reverse course later" and raise rates. But if the Fed keeps its rate too high for too long, "the labor market could soften unnecessarily," he added.
Powell's remarks echoed the caution he expressed during a news conference last week, after the Fed announced its first rate cut this year. At that time he said, “it's challenging to know what to do.”
The careful approach he outlined is quite different from that of some other members of the Fed's rate-setting committee, particularly those who were appointed by President Donald Trump, who are pushing for faster cuts. On Monday, Stephen Miran said the Fed should quickly reduce its rate to as low as 2% to 2.5%, from its current level of about 4.1%. Miran was appointed by Trump this month and rushed through the Senate, taking his seat just hours before the Fed met last Tuesday. He is also a top adviser in the Trump administration and expects to return to the White House after his term expires in January, though Trump could appoint him to a longer term.
And earlier Tuesday, Fed governor Michelle Bowman also said the central bank should cut more quickly. Bowman, who was appointed by Trump in his first term, said inflation appears to be cooling while the job market is stumbling, a combination that would support lower rates.
When the Fed cuts its key rate, it often over time reduces other borrowing costs for things like mortgages, car loans, and business loans.
“It is time for the (Fed) to act decisively and proactively to address decreasing labor market dynamism and emerging signs of fragility,” Bowman said in a speech in Asheville, North Carolina. “We are at serious risk of already being behind the curve in addressing deteriorating labor market conditions. Should these conditions continue, I am concerned that we will need to adjust policy at a faster pace and to a larger degree going forward.”
Yet Powell's comments showed little sign of such urgency. Other Fed officials have also expressed caution about cutting rates too fast, reflecting deepening divisions on the rate-setting committee.
On Tuesday, Austan Goolsbee, president of the Federal Reserve's Chicago branch, said in an interview on CNBC that the Fed should move slowly given that inflation is above its 2% target.
“With inflation having been over the target for 4 1/2 years in a row, and rising, I think we need to be a little careful with getting overly up-front aggressive," he said.
Last week the Fed cut its key rate for the first time this year to about 4.1%, down from about 4.3%, and policymakers signaled they would likely reduce rates twice more. Fed officials said in a statement that their concerns about slower hiring had risen, though they noted that inflation is still above their 2% target.
In a question and answer session, Powell said that tariffs, so far, have had a fairly limited impact on inflation, though he suggested that could change.
He said U.S. companies are paying most of the tariffs, which contradicts Trump administration claims that overseas companies are shouldering the payments. But he said that the pass-through of tariff costs to consumers “has been later and less than we expected."
He also said the Fed continues to tune out attacks against it and added that the Fed does not consider politics when making its decisions. Powell and the Fed have been under steady attack from Trump, though Powell did not name him.
“Whenever we make decisions, we’re never, ever thinking about political things,” Powell said. “Truth is, mostly people who are calling us political, it’s just a cheap shot. ... We don’t get into back and forth with external people.”
Federal Reserve Chairman Jerome Powell speaks during a news conference following the Federal Open Market Committee meeting, Wednesday, Sept. 17, 2025, at the Federal Reserve Board Building in Washington. (AP Photo/Jacquelyn Martin)
ARLINGTON, Texas (AP) — Keionte Scott peeked over at the Miami sideline to see the reaction of his teammates as he sprinted 72 yards untouched for a touchdown when returning an interception against defending national champion Ohio State.
They certainly were excited, as were a Pro Football Hall of Fame receiver and a former coach who won national championships with the Hurricanes.
Scott picked off a screen pass by Heisman Trophy finalist Julian Sayin, Carson Beck threw a touchdown pass and 10th-ranked Miami shocked the Buckeyes 24-14 on Wednesday night at the Cotton Bowl in the first College Football Playoff quarterfinal.
“I was full of emotions. ... That was a pretty cool moment,” said Scott, who has TD returns on both of his interceptions this season. “Just having fun. ... That’s what this team relies on, man, just going out there playing free and just having fun.”
The Hurricanes (12-2, CFP No. 10 seed) have won two playoff games to get into football’s final four after needing an at-large berth to make the 12-team field, after not even without playing in the Atlantic Coast Conference championship game. One more win and they will get to play for a national championship in their home stadium.
Next for Miami in coach Mario Cristobal’s fourth season is a CFP semifinal at the Fiesta Bowl on Jan. 8 against No. 3 seed Georgia or No. 6 seed Ole Miss, the SEC teams in the Sugar Bowl on Thursday night.
There hasn’t been a national title for “The U” since 2001, when Cristobal was an offensive tackle for the Hurricanes and part of his second championship there. The Hurricanes were denied a repeat the following season with a double-overtime loss in the Fiesta Bowl to Ohio State, the only other time the teams met in a bowl — and the last they played in that game.
“It is 100% not about me. I’m part of their team, I’m a part of that family,” Cristobal said. “It is my obligation as a former Miami Hurricane player and all the things that Miami did for my brother and I to do my best to try to provide these guys with even better opportunities so they can fulfill all the great things that are destined for”
Before Pro Football Hall of Fame receiver Michael Irvin and coach Jimmy Johnson won Super Bowl titles with the Dallas Cowboys, they were part of the Hurricanes' 1987 national championship. Irvin excitedly ran down the sideline while Scott was scoring for a 14-0 lead, and Johnson was nearby when acknowledged by Cristobal during the on-field trophy presentation.
Now it's third-ranked Ohio State (12-2, CFP No. 2 seed), which went into the game as a 9 1/2-point favorite according to BetMGM Sportsbook, that can't win back-to-back national titles for the first time in program history.
The Buckeyes hadn't played since a 13-10 loss to now-No. 1 Indiana in a Big Ten championship game matchup of undefeated teams on Dec. 6. They still got a first-round bye, then lost just like all four teams that went directly to the quarterfinal round in the inaugural 12-team playoff last season.
“We worked really hard during the last three weeks leading up to this game to come out of the gates and win the first quarter, win the first half, be ready to go,” Buckeyes coach Ryan Day said. “I think the guys bought into it. But at the end of the day, we didn’t get it done.”
Scott's interception return came only 1:42 after Beck's quick pass to Mark Fletcher Jr. coming out of the backfield for a 9-yard score.
Beck, who was part of Georgia's national titles in 2021 and 2022 when Stetson Bennett was the starter, completed 19 of 26 passes for 138 yards.
When asked what stood out to him about Miami, Beck said, “Just the way that this team has responded to adversity. We knew coming into today that it wasn’t going to be easy.”
The TD throw to Fletcher, who also ran 19 times for 90 yards and was the game's offensive MVP, was the seventh of 13 consecutive completions for Beck. That set a record in the Cotton Bowl, which was played for the 90th time.
Sayin, a freshman backup behind Will Howard for Ohio State's championship run last season, was 22 of 35 for 287 yards with two interceptions and a TD to Jeremiah Smith. Sayin was sacked five times.
AP All-America receiver Smith, the Miami native, caught seven of those passes for 157 yards, including a 14-yard TD on a fourth down in the fourth quarter.
Carter Davis added a 49-yard field goal in the third quarter and ChaMar Brown ran for a 5-yard TD in the game's final minute for the Hurricanes, whose 24 points were the most Ohio State gave up this season.
Miami: The Hurricanes have won six games in a row since an overtime loss Nov. 1 at SMU, less than 25 miles from AT&T Stadium, where the Cotton Bowl is played. They also made their CFP debut in the Lone Star State, winning 10-3 at No. 7 Texas A&M in the first round on Dec. 20.
Ohio State: All-America safety Caleb Downs, who started in the CFP for the third season in a row, became the first player to force two fumbles in a CFP game. ... The Buckeyes had gone four consecutive quarters — the equivalent of a full game — until Bo Jackson’s 1-yard TD run to cap its opening drive of the second half.
Miami waits to see who it will play in the Fiesta Bowl. Ohio State is scheduled to open the the 2026 season at home against Ball State on Sept. 5.
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Former NFL football players Ray Lewis, left, and Michael Irvin react after Miami running back Charmar Brown, not visible, scored a rushing touchdown during the second half of the Cotton Bowl College Football Playoff quarterfinal game against Ohio State Wednesday, Dec. 31, 2025, in Arlington, Texas. (AP Photo/Julio Cortez)
Miami head coach Mario Cristobal, right, hugs defensive lineman Ahmad Moten Sr. following the Cotton Bowl College Football Playoff quarterfinal game against Ohio State Wednesday, Dec. 31, 2025, in Arlington, Texas. (AP Photo/Julio Cortez)
Ohio State quarterback Julian Sayin, center, is sacked by Miami defensive lineman Rueben Bain Jr., left, and defensive lineman Akheem Mesidor during the first half of the Cotton Bowl College Football Playoff quarterfinal game Wednesday, Dec. 31, 2025, in Arlington, Texas. (AP Photo/Julio Cortez)
Miami quarterback Carson Beck, right, prepares to hand off to running back Mark Fletcher Jr. during the first half of the Cotton Bowl College Football Playoff quarterfinal game against Ohio State Wednesday, Dec. 31, 2025, in Arlington, Texas. (AP Photo/Julio Cortez)
Ohio State kicker Jayden Fielding, with Joe McGuire holding, misses a field goal against Miami during the first half of the Cotton Bowl College Football Playoff quarterfinal game Wednesday, Dec. 31, 2025, in Arlington, Texas. (AP Photo/Julio Cortez)
Ohio State head coach Ryan Day looks o during the first half of the Cotton Bowl College Football Playoff quarterfinal game against Miami Wednesday, Dec. 31, 2025, in Arlington, Texas. (AP Photo/Gareth Patterson)
Miami defensive back Jakobe Thomas, right, makes a tackle on Ohio State tight end Will Kacmarek during the second half of the Cotton Bowl College Football Playoff quarterfinal game Wednesday, Dec. 31, 2025, in Arlington, Texas. (AP Photo/Gareth Patterson)
