US EditionPowell signals Fed preparing to restart rate cuts, cites ‘downside risks’ to jobs in Jackson Hole speech
- Wall Street rallied on August 22, 2025, as Federal Reserve Chairman Jerome Powell indicated interest rate cuts may be imminent amid rising job market risks.
- This rally followed a surprisingly weak job growth report this month and Powell's cautious remarks about proceeding carefully with policy changes.
- Major market indexes climbed, with the S&P 500 rising 1.6%, the Nasdaq increasing 1.9% by late morning Eastern time, and the Russell 2000 index, which tracks smaller companies, jumping 3.8%.
- Traders placed a 91% probability on a Fed rate cut in September, up from 75% a day earlier, as Treasury yields fell notably on both 10-year and two-year notes.
- The market's reaction suggests growing investor optimism for easing monetary policy despite ongoing inflation risks and the Fed's challenging dual mandate.
131 Articles
131 Articles
Wall Street rallies and the Dow soars 900 points on hopes for lower interest rates
NEW YORK (AP) — NEW YORK (AP) - Wall Street is rallying on Friday toward its best day in months after the head of the Federal Reserve hinted the cuts to interest rates that investors and President Donald Trump crave so much may be on the way. The S&P 500 leaped 1.6%, and its first gain in six days has it on track to top its all-time high set last week. The Dow Jones Industrial Average soared 916 points, or 2.1%, and was above its last all-time h…
The United States labor market is in such a volatile state that interest rates could soon be cut to support the country's economy, Federal Reserve (FED) Chairman Jerome Powell said today.
The head of the U.S. Federal Reserve, Powell, has proposed a possible reduction in the key interest rate, but he does not seem to follow the will of U.S. President Trump - and warns of risks.
Powell Hints at Rate Cut, and Markets Surge
Fed chief Jerome Powell signaled Friday that he's ready to cut interest rates in the near future, though he offered no specifics and plenty of caveats in a closely watched speech. Still, the comments were enough to send markets surging, with the Dow rising more than 700 points as his...
The moment invoked for months by Donald Trump seems to have arrived. After fierce attacks on Jerome Powell by the American president, the Fed chief opened up to a cut in interest rates.
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