In a much-anticipated annual speech at Jackson Hole, Wyoming, on August 22, Fed Chair Jerome Powell signaled that the U.S. central bank may be preparing to roll back interest rates that drive much of the economy. His remarks mark a shift from the Fed's recent stance of holding rates steady amid calls for support from businesses and consumers.
Under public pressure to ease borrowing costsâintensified by direct appeals from U.S. President Donald TrumpâPowell acknowledged the challenge of striking a balance between sustaining growth and warding off inflation. Traders and analysts are interpreting the speech as a nod toward potential rate cuts later this year.
Reporter Owen Fairclough notes that expanding tariffs threaten to push up inflationânormally contained by higher ratesâadding complexity to Powell's balancing act. Investors and policymakers will now eye upcoming Fed minutes and speeches for firmer signals on when rate relief might arrive.
Reference(s):
cgtn.com
