Big Take What Powell Said About the Possibility of a September Rate Cut
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Aug 22, 2025 Amara Omeokwe, a Federal Reserve and U.S. economy expert for Bloomberg News, joins the discussion from the Jackson Hole Economic Policy Symposium. She highlights Jerome Powell's cautious signals regarding a potential September interest rate cut, prompting positive Wall Street reactions. The conversation delves into the Fed's balancing act amid political pressures and the scrutiny from the White House. Key insights reveal the Fed's challenges in decision-making as it navigates evolving economic data alongside rising political tensions.
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Powell Signals Possible September Cut
- Jerome Powell opened the door to a possible September rate cut while emphasizing caution.
- Markets rallied on the signal, with equities up and yields down.
Political Pressure On The Fed Is Broadening
- The Trump administration has waged an unprecedented pressure campaign on the Fed to lower rates.
- Criticisms have extended beyond policy to scrutiny of Fed renovations and personal attacks on governors.
Labor Risks Versus Tariff-Driven Inflation
- Powell balanced rising downside employment risks against the risk that tariffs could raise inflation.
- That trade-off explains why he hedged openness to cuts while warning of inflation dangers.