Powell's Last Jackson Hole Speech Could Be a Big 1
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Powell's Jackson Hole speech hinted at a September rate cut, but labor concerns and data show high uncertainty. Read why markets rallied, but caution is key.
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.
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.
Powell delivered the guidance in a highly anticipated speech on Friday at the central bank's annual symposium in Jackson Hole, WY.
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.