Overview

• Jerome Powell said the Federal Reserve can lower rates carefully, citing upside inflation risks tied to new tariffs and growing concerns about softer employment.
• He said conditions could justify an adjustment in policy stance, which investors interpreted as opening the door to a move at the September meeting.
• U.S. stocks rose and the yen strengthened against the dollar on increased expectations for near‑term easing following the remarks in Jackson Hole.
• President Trump said he would dismiss Governor Lisa Cook if she does not resign after the Federal Housing Finance Agency asked the Justice Department to investigate alleged mortgage‑application irregularities, which Cook denies.
• Law states Fed governors can be removed only for cause, and the FHFA referral adds a governance test as the Fed weighs its first policy move since holding rates steady for five straight meetings after cuts in late 2024.