Federal Reserve Chair Jerome Powell's remarks at the Jackson Hole symposium on Friday sent a strong signal that the central bank is preparing to cut interest rates as early as next month, with markets now heavily betting on a September move.
Powell said the Fed "may need to cut rates" but will proceed carefully, balancing still-elevated inflation pressures with signs that the labor market is cooling, according to Reuters. He also pointed to tariff-related price risks that the Fed must "assess and manage," underscoring the delicate position policymakers face.
