Here's a rewritten version:
**Federal Reserve Chair Jerome Powell is set to address the U.S. economy once more, with financial markets closely watching for guidance on interest rate policy.**
**The Market's Big Question: How Deep and How Quick Will Rate Cuts Go?**
By Jeffry Bartash
Last Updated: Sept. 22, 2025 at 6:04 p.m. ET | First Published: Sept. 22, 2025 at 4:56 p.m. ET
*Jerome Powell speaks to reporters in July. Photo: Chip Somodevilla/Getty Images*
**Market Indicators:**
- Dow Jones Industrial Average: +0.14%
- S&P 500: +0.44%
Financial markets have closely tracked Federal Reserve Chair Jerome Powell's statements as stock indices soar to unprecedented levels. Investors await his Tuesday remarks for additional insight into the central bank's rate-cutting strategy.
The sustainability of the current bull run—and broader economic stability—may hinge on his upcoming comments.
Powell will present his economic outlook during a midday address in Rhode Island, following the Fed's first rate reduction of 2025. This monetary policy shift sparked the most recent equity market surge.
While Powell typically avoids major revelations in such speeches, market participants will scrutinize every detail for hints about future rate adjustments.
Current market expectations point to quarter-point reductions at the Fed's remaining 2025 meetings in October and December. Additional cuts are anticipated for next year, though Federal Reserve projections suggest a more measured pace than many investors expect.
Wall Street Fed observers consider Powell supportive of further rate reductions this year, aimed at preventing significant unemployment increases.
The Fed chair endorsed last week's rate cut as a "risk management" decision, citing emerging labor market softness. Job creation has decelerated dramatically, unemployment rates have edged upward, and job seekers face extended search periods.
However, inflation has accelerated and moved away from the Fed's 2% objective. The latest consumer price index shows inflation running at nearly 3%.
Powell and fellow Fed officials emphasize their dual mandate responsibilities: maintaining price stability while supporting employment. Currently, employment concerns take precedence over inflation risks.