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.
138 Articles
138 Articles
With Fed under pressure, Jerome Powell prepares for a high-stakes speech – Knowhere News
In what will be his last speech as Fed chair, Federal Reserve Chairman Jerome Powell will address the high-profile, high-altitude meeting in Jackson Hole, Wyoming, on Friday. The White House is putting increasing pressure on the central bank to cut interest rates, which coincides with the address. Three and a half weeks prior to the Fed’s next rate-setting meeting, Powell will discuss the state of the economy. Additionally, he will discuss the c…
What are the risks to the labor market after Powell's speech amid inflation concerns?
Federal Reserve Chairman Jerome Powell received a standing ovation in Jackson Hole, Wyoming, on Friday. Powell said the central bank could soon resume cutting interest rates.
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.
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