Good morning. C-suite leaders have plenty to worry about, with economic uncertainty high on the list—and Federal Reserve Chair Jerome Powell shares their concerns.
“It’s not an easy job, but it’s one we’ve willingly taken on,” Powell said Tuesday during a House Financial Services Committee hearing, referring to the role of the Fed. He reflected on how much people rely on the central bank to get things right.
As chair, Powell said he worries about whether there will be a healthy economy for his successor to inherit. “All I want to do in what’s left of my time at the Fed is have the economy be strong, have inflation under control, and have a solid labor market,” he said. “I want to turn it over to my successor in that condition…What keeps me up at night is to do that. That’s the only thing I think about.”
Powell’s term ends in May 2026, but speculation about his successor is already underway, especially as President Donald Trump has repeatedly criticized him for not lowering interest rates.
So far in 2025, the Federal Open Market Committee has kept rates steady at 4.25%–4.5%, adopting a wait-and-see approach as it monitors the effects of tariffs and other changes on inflation. “All professional forecasters that I know of, on the outside and the Fed, do expect a meaningful increase in inflation over the course of this year,” Powell said on Tuesday. He also mentioned that smaller businesses relying on single imports are especially vulnerable to tariffs, while larger firms can better absorb such shocks.
Commenting on Powell’s testimony, EY-Parthenon Chief Economist Gregory Daco told me he found it important that Powell stressed that, absent tariffs, the Fed would likely have continued easing policy—confirming an underlying desire to move from a restrictive stance to a neutral one.
Daco’s Global Economic Outlook report released Monday highlights that the Fed faces a narrow path: growth is slowing, but new inflationary pressures from tariffs and fiscal policy complicate further rate cuts. “The risk of holding rates too high for too long is rising,” he writes.
The primary risk is the Fed maintaining a restrictive stance even as the economy weakens, Daco told me. Headline inflation may rise soon due to tariffs, but these are supply-side shocks—not signs of overheating demand, he explained. Higher prices likely will reduce demand as job growth slows, impacting investment and spending. Delaying rate cuts risks worsening economic and labor market pressures.
His advice for CFOs: “This environment calls for a strategic balancing act: maintain strong liquidity buffers, rigorously stress test downside scenarios under tighter financial conditions, and remain agile in adjusting investment plans should labor costs ease and demand growth decelerate.”
Sheryl Estrada
sheryl.estrada@fortune.com
Leaderboard
Jason Wilson was promoted to CFO of Ahold Delhaize USA, a grocery retail group with brands including Food Lion, The GIANT Company, Giant Food, Hannaford, and Stop & Shop. Prior to this role, Wilson served as SVP of finance for Food Lion. Wilson started his career in 2000 at Ahold Delhaize USA’s predecessor support brands, serving as director of business development, VP of strategy, and VP of finance and business planning. In addition, he has held several positions in category management and joined the organization as an inventory controller in accounting.
Michael Zambito was appointed CFO of Acacia Research Corporation (Nasdaq: ACTG), effective June 24. Kirsten Hoover, Acacia’s current interim CFO, will continue to serve as controller. Before joining Acacia, Zambito spent the past 30 years at Ernst & Young. Most recently, he spent over 23 years, including the last 17 as a partner, in Ernst & Young’s EY-Parthenon. Prior to this, Zambito spent seven years in Ernst & Young’s NY audit practice, as staff through manager.
Big Deal
A new report from the Deloitte Center for Health Solutions, “How Health Care CFOs Can Adapt to Emerging Industry Conditions,” reveals that 84% of surveyed health care finance leaders are concerned about business conditions stemming from potential regulatory and policy changes, macroeconomic uncertainty, and disruptions related to tariffs and supply chains. Notably, 73% of respondents expressed concerns about revenue growth and operating profitability.
Health care CFOs’ priorities have shifted, with workforce challenges, cost reductions, and cybersecurity becoming less urgent amid rising external pressures. Tariffs and trade policy changes—especially potential new tariffs on prescription drugs and medical supplies—could increase hospital costs by 15% or more, according to the report.
M&A, strategic alliances, and value-based contracts remain key growth areas, though few finance leaders report strong impacts from these efforts. Meanwhile, outsourcing non-core services can reduce costs by up to 28%, yet 25% of health plan and 16% of health system finance leaders are not prioritizing it.
Another finding is 53% of health systems reported strong impacts from transformative technologies like generative AI and cloud, while 72% of health plans reported only moderate to no impact.
Going deeper
“The AI Efficiency Trap: When Productivity Tools Create Perpetual Pressure” is a new report in Wharton’s business journal. AI is boosting productivity, but that doesn’t guarantee better working conditions for humans, writes Wharton visiting scholar Cornelia Walther. “The most successful approaches involve conscious AI integration—deliberately designed systems that enhance human capability without overwhelming human workers,” according to Walther.
Overheard
“We had the courage to break the problem down step by step and reinvented everything about our company and everything about how computing was done.”
— Nvidia cofounder and CEO Jensen Huang said during the 154th Yale Chief Executive Leadership Institute CEO Forum, wrote founder of the institute Jeffrey Sonnenfeld and Stephen Henriques, a senior research fellow, in a new Fortune opinion piece. Reflecting on his success, Huang shared what led him and Nvidia to where they are today.
