Summary
The head of the U.S. central bank, Jerome Powell, increased expectations for an interest rate cut in September. He spoke about this at a meeting in Jackson Hole, Wyoming, where he also discussed the temporary effects of tariffs on inflation. Powell's comments led to a rise in share prices, indicating a shift towards lowering borrowing costs.
Key Facts
- Jerome Powell is the head of the U.S. central bank.
- Powell hinted at a potential interest rate cut in September.
- The U.S. central bank is facing political pressure from President Trump.
- Powell discussed temporary effects of tariffs on inflation.
- Share prices rose following Powell's comments about lowering borrowing costs.
- Economists expect interest rates to fall from their current 4.25 to 4.5% range.
- Powell noted that current interest rates are high enough to slow economic activity.
- The U.S. central bank usually cuts rates when the economy slows to boost growth.
