Federal Reserve Chair Jerome Powell is scheduled to deliver a speech in Rhode Island on Wednesday, focusing on the economic outlook and potential rate cuts. Following the Fed's initial rate cut of 2025, which spurred a stock market rally, investors anticipate two additional 25-basis-point cuts in October and December. However, the Fed's projections suggest a slower pace of cuts than the market expects. Powell has advocated for further rate reductions this year to mitigate rising unemployment, as the labor market shows signs of weakening. Inflation has climbed to nearly 3%, deviating from the Fed's 2% target, but officials largely view the inflationary impact of recent tariffs as temporary. Powell stressed the importance of monitoring inflation risks closely.