Powell remarks bolster bets on Fed rate cuts

22/08/2025 Argaam
Logo of the US Federal Reserve, as Jerome Powell’s remarks boost expectations of renewed interest-rate cuts

Logo of the US Federal Reserve, as Jerome Powell’s remarks boost expectations of renewed interest-rate cuts


Market expectations for the Federal Reserve to resume interest rate cuts at its September meeting increased after Fed Chair Jerome Powell hinted that current conditions may warrant such a move.

 

The probability of a 25 basis point rate cut at next month’s meeting rose to 91.2%, compared with 75% a day earlier and 85.4% a week ago, according to CME FedWatch estimates.

 
Speaking at the Jackson Hole Symposium today, Powell indicated the possibility of renewed monetary easing, citing a shift in the balance of risks due to significant changes in tax, trade, and immigration policies.
 
Powell confirmed that the Fed will proceed cautiously in assessing its policy stance, stressing policymakers’ commitment to a data-driven approach in decision-making.

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