US EditionPowell Turns Dovish–And Rate Cuts Now Loom
Powell highlighted a sharp slowdown in job growth to 35,000 per month and noted inflation pressures are likely temporary while the Fed monitors risks to economic growth.
- On Friday, Federal Reserve Chair Jerome Powell opened the door to lowering a key interest rate in the coming months at the Jackson Hole Economic Symposium, emphasizing the Fed's independence from political pressures.
- With GDP and hiring losing momentum, job growth has sharply decelerated from 168,000 per month in 2024, while GDP growth slowed to 1.2% annualized in the first half of 2025.
- Powell noted that recent headline and core Personal Consumption Expenditures inflation rises in July are likely temporary, and he stressed, "Monetary policy is not on a preset course."
- Markets immediately repriced policy, lifting odds that a cut will come in September as the implied odds rose to 90% from 72%, while the U.S. dollar fell, U.S. Treasury yields dropped, and stocks extended gains.
- In the coming months, key data like the August jobs report and CPI/PPI inflation data will determine the Fed's next meeting decisions, with several commentators expecting multiple cuts over six months.
20 Articles
20 Articles
Powell’s Signal on Possible Rate Cut Not Enough for Trump
This is Washington Edition, the newsletter about money, power and politics in the nation’s capital. Today, senior US economy reporter Enda Curran looks at Fed Chair Powell’s address and the White House reaction. Sign up here and follow us at @bpolitics. Email our editors here.
Stocks and Bonds Rise After Powell Suggests Rate Cuts Could Be Imminent
Stocks and bonds rose on Friday, as investors cheered rising hopes that the Federal Reserve would soon begin to cut interest rates after comments from the central bank’s chief. The S&P 500 had already nudged 0.5 percent higher before Jerome H. Powell, the chair of the Federal Reserve, delivered his hotly anticipated speech in Jackson, Wyo. Mr. Powell cautioned in his speech that emerging weakness in the labor market could warrant a cut to intere…
Jerome Powell, the president of the Federal Reserve, is giving much to talk about in Jackson Hole, Wyoming, this Friday. In what is expected to be his last speech at the iconic annual meeting of central bankers, policymakers and economists, Powell has left the necessary clues to turn on the financial sector alarms. Choosing his words suggests a possible cut in rates in September, marking a potential change in the Reserve's strategy.One of the bi…
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