Fed's chair signals likely September rate cut as job growth sputters

Federal Reserve Chair Jerome Powell on Aug. 22 opened the door to a September interest rate cut despite a recent inflation rise, asserting that “ downside risks to employment are rising .”

Although inflation is still “somewhat elevated,” he added, “At the same time, the balance of risks appears to be shifting,” Powell said in a speech he delivered at the Fed’s annual conference in Jackson Hole, Wyoming. Separately, Powell also announced a reversal of a 5-year-old policy shift that could keep interest rates somewhat higher over the long term.