Powell Signals Possible Rate Cut Amid Economic Uncertainty

Federal Reserve Chair Jerome Powell hinted at a potential interest rate cut next month, noting challenges in the labor market and inflation risks due to tariffs. While stocks surged on his dovish remarks, President Trump increased pressure on the Fed, calling for immediate rate cuts and personnel changes.

Federal Reserve Chair Jerome Powell on Friday indicated a possible interest rate reduction at the upcoming central bank meeting, acknowledging risks in the job market and inflationary pressures from tariffs.

Powell stopped short of committing to a cut, emphasizing the need for cautious policy adjustments amid a balanced yet fragile labor market.

His remarks prompted U.S. stocks to rise and increased the probability of a September rate cut, while President Trump ramped up his campaign for immediate rate slashing and personnel changes within the Fed.

(With inputs from agencies.)