FT News Briefing Jerome Powell triggers market bets on a September rate cut
46 snips
Aug 25, 2025 Jay Powell's recent speech at Jackson Hole has set the stage for potential U.S. rate cuts, capturing market attention. Meanwhile, European investors are pouring funds into innovative air defense technologies, inspired by escalating security threats. Spanish bank Santander is ambitiously venturing into the SPAC market, aiming to enhance its Wall Street impact. The podcast also dives into the implications of labor market trends and necessary economic data as the Federal Reserve navigates its credibility amid ongoing political pressures.
AI Snips
Chapters
Transcript
Episode notes
Powell Signals Shift Toward A September Cut
- Jay Powell signalled the Fed is more open to a rate cut because the labour market is weakening and tariff-driven inflation looks transitory.
- Markets priced a September 25bp cut but will watch August payrolls and CPI for confirmation.
Tariffs Seen As A One‑Off Inflation Shock
- Powell argued tariff effects on inflation are likely a one-off shock rather than persistent pressure.
- He and others believe anchored inflation expectations give the Fed room to cut while retaining credibility to reverse if needed.
Use Payrolls And CPI To Judge Fed Action
- Watch the August non‑farm payrolls and August CPI before the Fed meeting to judge if a September cut is safe.
- Use those data points to reassess market pricing for a 25bp cut rather than relying on Jackson Hole signals alone.