Wall Street turned its attention to Rhode Island on Tuesday as Jerome H. Powell, chair of the Federal Reserve, delivered a speech in Warwick that identified key problems facing the national economy. Ultimately, he remained optimistic about the Fed’s ability to address the country’s financial struggles despite concerning developments such as rising unemployment and inflation.

Powell highlighted a stagnating labor market and elevated inflation rates as the primary issues the Federal Reserve currently seeks to address, defending the recent decision to cut federal interest rates as a shift toward a “more neutral policy stance.”

“Those of us who are in public service at this time need to focus tightly on carrying out our critical missions to the best of our ability in the midst of stormy seas and powerful crosswinds,” he said.

It was the first time the Fed chair had spoken publicly after the decision to drop federal interest rates was announced last week.

Powell delivered his remarks to more than 500 Rhode Island business leaders at a luncheon organized by the Greater Providence Chamber of Commerce (GPCC), held at Crowne Plaza. He said that since he last spoke at a GPCC luncheon in 2019, the country’s economic landscape had been rocked by the COVID-19 pandemic but had been stabilized by aggressive action from the Federal Reserve.

While the unemployment rate today is low, Powell said, it’s “edged up” while job gains have slowed. He referred to the reduced supply and demand for skilled workers as an “unusual and challenging development” in the labor market, but noted that other indicators, such as the ratio of job opportunities to unemployment, have remained stable.

His visit to the Ocean State was covered extensively by national media, with some outlets noting a downturn in American stocks shortly after Powell delivered remarks indicating uncertainty about the country’s economic future. Still, Powell reaffirmed the Fed’s commitment to softening the blow of recent economic hardship for Americans.

Powell, whom President Trump has publicly criticized, largely kept his speech to numbers and didn’t venture into politics. But he did allude to the uncertain economic impact of new policies enacted by the Trump administration during his remarks.

“Turning to the present day, the U.S. economy is showing resilience in the midst of substantial changes in trade and immigration policies, as well as in fiscal, regulatory and geopolitical arenas,” he said. “These policies are still emerging, and their longer-term implications will take some time to be seen.”

On the other hand, Sen. Jack Reed, D-RI, explicitly called out the Trump administration’s “chaotic policy agenda” in his introduction, commending Powell for his adaptability despite the circumstances.

“The policy chaos has extended into a direct assault on the Fed's independence and personal attacks by the president against members of the Fed,” said Reed, who had invited Powell to speak at the event alongside the GPCC. “But Chair Powell has met these challenges with equanimity and professionalism.”

Following his speech, Powell joined GPCC President Laurie White for a wide-ranging conversation about the current state of American economics, which touched on the impact of artificial intelligence, college enrollment figures and tariffs.

Powell made headlines with his response to Trump’s accusations that the Fed had become a politicized entity, during the discussion calling this characterization a “cheap shot” by the president.

He said tariffs are a factor in rising inflation rates, but not a significant one. Powell said the Fed would wait to see the long-term impact of tariffs on inflation before moving to make further cuts to the federal interest rate.

“The responsible thing from our standpoint was to watch and wait, because, you know, it's our job to make sure we don't make a mistake with inflation,” he said.

Higher education had already become one of the afternoon’s main topics even before Powell took the stage. Marc Parlange, president of University of Rhode Island, delivered opening remarks at the event in which he touted the university’s contributions to the state economy and labor market.

While he did not directly name the Trump administration, which has frozen billions of dollars worth of federal funding bound for universities, Parlange mentioned “very real and very challenging national headwinds” that have recently posed a challenge to higher education.

“When universities falter, the consequences are not confined to the institution,” Parlange said. “Patients go untreated. Communities lose vital access to critical resources. Life-changing research comes to a halt.”