United States Interest Rate

Fed Chair Jerome Powell signaled the door is open to a September rate cut, citing rising risks to the labor market even as inflation pressures linger. He noted July jobs data showed weaker hiring than thought, warning that layoffs could rise quickly if conditions deteriorate. Still, he stressed tariffs from President Trump may fuel persistent inflation, requiring caution. Powell emphasized the Fed must balance growth and price stability, saying policy remains restrictive but could be adjusted if risks tilt further toward employment. Investors see about a 75% chance of a September cut, though Powell avoided confirming it. His comments sent Treasury yields lower, stocks higher, and the dollar down, as markets weighed his attempt to keep flexibility while under political pressure.