Officers were called to the street on Tuesday afternoon.
Footage posted to Facebook by Jordan Denny showed a man speaking on a microphone and using discriminatory language.
A large group of people gathered around the speakers to challenge him before the police were called.
A man was later arrested by police on suspicion of public order offences.
A West Yorkshire Police spokesman said: "Police in Leeds received several reports of an ongoing hate incident on Briggate in Leeds during Tuesday afternoon.
"Officers attended and located and arrested a male on suspicion of public order offences.
"He was later released on police bail pending continuing enquiries.
"All reports of hate offending are taken very seriously by West Yorkshire Police and are fully investigated."
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