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.
114 Articles
114 Articles
The President of the Federal Reserve (Fed), the U.S. Central Bank, spoke on Friday, August 22, at the traditional September Jackson Hole Central Bankers' meeting in the west of the United States. A much-awaited speech as the independent institution was subjected to fierce attacks by Donald Trump, who believes that it is hindering economic growth by not lowering these rates. Jerome Powell finally opened the door to a possible fall in rates.
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...
Bowen Island Undercurrent
Richmond RegisterWall Street rallies and the Dow soars 900 points on hopes for lower interest rates
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 .
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