Fed Chair Hints at Rate Cuts Amidst Rising Economic Concerns
Jerome Powell, the Federal Reserve Chair, hinted at potential interest rate cuts at the upcoming Fed meeting due to rising economic risks, despite ongoing inflation concerns. Analysts adjusted their forecasts, now predicting two rate cuts by year's end, while President Trump continues to pressure Powell and the Fed.
Federal Reserve Chair Jerome Powell on Friday indicated the possibility of an interest rate cut at next month's Fed meeting, citing increasing economic risks and inflation concerns. Speaking at the annual Jackson Hole conference, Powell noted that while the job market faces rising risks, decisions on rate adjustments aren't finalized.
Following Powell's remarks, analysts from Deutsche Bank and LH Meyer revised their forecasts, now expecting two quarter-point interest rate cuts before the year ends, moving away from a December timeline. The current range stands at 4.25%-4.50%, and investors responded positively with market activities reflecting increased chances of a September cut.
Despite concise guidance on future rate cuts, Powell's speech intertwined with President Trump's overt pressure for immediate rate reductions. The ongoing debate within the Fed, highlighted by differing views from policymakers, reflects the complex economic landscape as the next Fed meeting approaches.
(With inputs from agencies.)
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