Federal Reserve Chair Hints at Possible Upcoming Rate Cuts

WASHINGTON (Gray DC) – Federal Reserve Chair Jerome Powell hinted Friday for the first time this year the U.S. could see interest rate cuts as soon as September.

This marks a shift in stance for the Fed’s Board of Governors, who have previously been cautious about rate cuts in an uncertain economy. But, nothing yet is set in stone.

Powell made comments at an economic symposium in Jackson Hole, Wyo., opening the door to possible rate cuts and sending markets surging.

“The baseline outlook and the shifting balance of risks may warrant adjusting our policy stance,” Powell said.

The usually cautious chairman said concerns with the job market are causing the central bank to take a second look.

“It is a curious kind of balance that results from a marked slowing in both the supply of and demand for workers,” Powell said. “This unusual situation suggests that downside risks to employment are rising.”

The White House has been pushing for rate cuts for months now, with President Donald Trump sharing his frustration that things haven’t moved. That’s just one factor in the administration’s complicated relationship with the Fed as economists closely watch the effects of Trump-ordered tariffs on inflation.

“The upward pressure on prices from tariffs could spur a more lasting inflation dynamic, and that is a risk to be assessed and managed,” Powell said.

To add to the tension, President Trump told reports Friday morning he would fire Fed Governor Lisa Cook if she doesn’t resign after a Trump political ally accused her of mortgage fraud.

“What she did was bad,” said Trump, “so I’ll fire her if she doesn’t resign.”

Still, markets took the news in stride with the Dow Jones Industrial Average closing at a record high Friday.

The Fed is expected announce their decision on rate cuts September 17.

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