Overview

• In Jackson Hole remarks, Jerome Powell said the U.S. is nearing a point where lower rates may be needed to support employment and flagged the risk of a rapid labor-market weakening.
• He said newly imposed tariffs are already feeding through to consumer prices, complicating the inflation outlook for policymakers.
• Market odds for a September easing rose, with Treasury yields falling sharply (the 2-year near 3.69%), the dollar weakening and gold advancing.
• U.S. equities surged on the speech, with the Dow Jones closing at a record and the S&P 500 and Nasdaq gaining more than 1.5%.
• European shares also firmed, with Paris’s CAC 40 up 0.40%, as investors embraced a potential policy pivot while the Fed remains data dependent.