Powell's Last Jackson Hole Speech Could Be a Big 1
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1don MSN
Powell Says Conditions ‘May Warrant’ Interest Rate Cut In Jackson Hole Speech (Live Updates)
The Trump administration has pressured Powell, whose term as Fed chair expires next year, to step down as chair of the central bank.
Federal Reserve Chair Jerome Powell on Friday opened the door ever so slightly to lowering a key interest rate in the coming months but gave no hint on the timing of a move and suggested the central bank will proceed cautiously as it continues to evaluate the impact of tariffs and other policies on the economy.
Jerome H. Powell said the “balance of risks” across the economy had started to shift, raising the odds the central bank lowers borrowing costs at its next meeting in September.
Powell’s speech comes amid unprecedented pressure from the White House aimed at getting the central bank to lower borrowing costs.
Minutes after the speech, investors pegged the chances of a quarter-point interest rate cut at 91%, up from a 75% chance assessed one day earlier, according to CME FedWatch Tool, a measure of market sentiment. Despite the market's positive reaction to Powell's speech, the Fed chair voiced a note of caution for the outlook for the U.S. economy.
U.S. stock indexes extended gains on Friday after Federal Reserve Chair Jerome Powell pointed to a possible rate cut at the central bank's next policy meeting in his remarks at the Jackson Hole Symposium.