Powell just spoke at Harvard in one of his last appearances as Fed Chair.

Here's a summary of the most important points you need to know:
- Interest rates and inflation: Powell made it clear that the top priority is to bring inflation down to 2%. For now, he believes there’s no point in lowering interest rates for the rest of 2026.
- U.S. debt: He explained that although the country can pay its debts today, the problem is that debt is growing much faster than the economy. He warned that this is unsustainable in the long term and must be corrected to avoid future crises.
- Artificial Intelligence: Powell sees AI as a two-sided coin. He acknowledged that some jobs will disappear, but he’s optimistic because he believes technology will make us more productive and improve everyone’s standard of living over time.
- The war in Iran and energy: This was today’s key point. Powell noted that the Fed is closely monitoring the impact of the Iran conflict on inflation. He admitted that the Fed has little control over oil prices but fears that these "supply shocks" could cause businesses and families to start expecting higher prices across the board.
- Banking system: He assured that the financial system is much more resilient and secure today than before the 2008 crisis. This strength is what allows the economy to better withstand current geopolitical tensions.
- Independence of the Fed: He was very firm that the central bank must operate without political interference. He urged that his successor (Kevin Warsh) not be pressured by any government, as independence is what lends credibility to its decisions to manage the economy.