Summary of speech of Fed chairman

Here is the main summary of the speech given by Federal Reserve Chair Jerome Powell today, September 23, 2025. Powell stated that the U.S. economy is in a "challenging situation," where the job market is slowing down while inflation is still somewhat elevated.

Key Points:

Caution on Interest Rates: After cutting interest rates last week, Powell signaled that future additional cuts would be made slowly and cautiously. He said that if rates were cut "too aggressively," there would be a risk of inflation getting out of control. However, if interest rates are kept high for too long, it could unnecessarily weaken the labor market. This move by the Fed is being seen as part of "risk management."

State of the Economy: According to Powell, the pace of economic growth has "moderated." Job growth has slowed, and a risk of rising unemployment has emerged. Consumer and business sentiment also remains weak.

Inflation: Although inflation has fallen from its 2022 peak, it remains above the Fed's 2% target. Recent data shows it at 2.7%. Powell expressed confidence that the price increases caused by tariffs would be short-lived and not have a long-term impact, but he acknowledged the risk of rising inflation in the short term.

Labor Market: There has been a decline in both the demand for and supply of workers in the labor market, which Powell described as an "unusual and challenging development." The Fed is closely monitoring the condition of the labor market.

Overall: Powell's speech signaled that the Federal Reserve is very cautious amid the current economic uncertainty and that future decisions will be data-dependent. They are seeking to strike a balance between inflation and employment.

Increased market interest rate impact on value

People generally hold investments in bonds and other securities  and thereby they normally receive fixed amount of interest as income, but as we all know market is dynamic there are multiple factors which alters the market interest rates and this will result in change in our value of investments held.

Say I am holding 10% debentures of nominal value usd100,000 having 5 years maturity, this simply means  I have put my usd100,000 capital on debentures, thereby I will be receiving interest as income of  usd10,000 annually (100000*.10).

But say market conditions changes and now the market rate of interest on such debentures is 15%, this simply means if anybody invests in debentures currently  under changed market interest rate he will be getting 15% interest as income annually (i.e usd15,000 annually), but since I have already invested @10% , I will be getting usd10,000 only. This simply means my investment value has decreased. My current value of investment is not usd100,000 rather it is usd66,666 (10000/.15). In other words the amount of income in the form of interest I am receiving i.e usd10,000 would have been received at principal amount of usd66,666 under current scenarios (i.e usd66,666*.15=10,000).  The amount of income I am receiving i.e usd10,000 can be possible by investing usd66,666 under current market scenarios(i.e at 15% rate of interest). In other words if somebody wants to receive usd 10,000 anually he need to invest only usd 66,666 and not 100,000 under changed interest rate. This denotes the value of my original investment of usd100,000 is usd66,666 only, i.e decrease of usd33334 due to increased market interest rate. (From 10% to 15%). Now what I am willing to do is to sell my existing debentures carrying 10% interest rate and buy new 15% debentures , but I will not get usd 100,000 from the buyer of my 10% debentures  rather I can only get usd 66,666 since now the value has decreased.

Since I have already mentioned market is dynamic , so there is always risk of value being deteriorated, so what one can do is to use means to avoid this risk through different techniques, and there are numerous techniques available such as forward and futures contract.

The question might arise in mind, does increased interest rates affects stock prices? The answer is yes. The reason is, due to increased borrowing rates corporation postpones it's lendings and thereby less spendings and this halts company's growth and which result in decrease in stock prices

How Stupid We humans are?

 One human is killing another, resources are being destroyed in building /manufacturing all these nonsense(weapons of mass destruction like hypersonic missiles, nuclear weapons) , the purpose is not to use against any perpetrator of Earth it is rather to kill humans themselves, manufacturing machines for killing ourselves. I won't mind if we would lost our existence because we deserve this, our actions are dictating this, what makes me sad is we are taking along with us other innocent living beings ,,,

The end of human civilization either by war or by natural disaster is certain to happen if these kindda power show continues.. moreover these action makes humans more stupid than any other living beings. Shall we call ourself most developed, clever and Smart living being despite of all this?

These words look too disturbing but this is going to be our fate if timely we don't halt our unethical, irresponsible actions. Right now world seems to be so imbalanced , everybody is in the race of developing more sophisticated weapons and the reason for such development is no other than destruction. We are using natural resources as if we alone own it.

I wish and Hope peace be maintained, ecological balance be checked, war that is happening around the world be halted. Wish the true value of humanity and Humans be established.

Earth is our home don't fight for political boundaries, this is happening because of our Ego and greed. Stop all this, save humanity, spread love, live happily and move in a direction that leads to flourishing human race where humanity should only be the religion.