Federal Reserve Chairman Jerome Powell addressed the National Association for Business Economics conference in Philadelphia, emphasizing that future monetary policy will be guided by data and risk assessments. Powell highlighted increased downside risks to the U.S. labor market and noted that tariffs are contributing to rising price pressures. He indicated that these labor market concerns could justify a potential interest rate cut in September. Additionally, Powell suggested that the Fed's balance sheet reduction might conclude in the coming months, as markets closely monitor his remarks for insights into interest rate trends for the remainder of the year and into 2026.