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4h ago

Powell Signals Openness to September Rate Cut as Fed Recasts Policy Framework

Markets priced a September cut after Powell highlighted rising job risks alongside tariff-driven inflation pressures.

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Euforia en Wall Street frente a la posibilidad de un recorte de tasas en septiembre.
Los números de hoy 22 de agosto.
El corredor de bolsa Richard Cohen trabaja en el piso de remates de la Bolsa de Valores de Nueva York, el lunes 18 de agosto de 2025. (AP Foto/Richard Drew)

Overview

  • U.S. stocks jumped after the Jackson Hole speech, with the Dow closing at a record 45,631.74 (+1.9%), the S&P 500 up about 1.5%, and the Nasdaq up about 1.9% as other assets from gold to bitcoin also advanced.
  • Treasury yields fell, with the 10-year drifting to roughly 4.25% from 4.33% and the 2-year to about 3.69% from 3.79%.
  • CME Group’s FedWatch showed market-implied odds in the mid-to-upper 80% range for a 25-basis-point cut in September, signaling swift repricing.
  • Powell unveiled an updated operating framework that removes low-rate-environment language and drops the 2020 “compensation” strategy, returning to flexible inflation objectives.
  • He warned that new tariffs are feeding into consumer prices and that downside risks to employment are increasing, leaving the policy path contingent on incoming data into the September decision.