U.S. Stocks Rise as Powell Signals Possible Rate Cuts.
US stocks push higher as Powell signals openness to potential interest-rate cuts
U.S. stock indexes advanced further on Friday after Federal Reserve Chair Jerome Powell signaled the possibility of a rate cut at the central bank’s upcoming policy meeting during his remarks at the Jackson Hole Symposium.
Powell suggested that a rate reduction could come as early as September but refrained from making any firm commitment. His comments carefully balanced concerns over rising risks to the labor market with the ongoing threat of elevated inflation.
Investors are expected to dissect Powell’s speech for fresh clues on the Fed’s policy direction, particularly regarding the timing of the first rate cut this year and the potential pace of additional easing. His remarks are likely to fuel volatility in the U.S. Dollar (USD) as markets brace for a potential shift toward a policy-easing stance beginning in September.
