Jerome Powell noted temporary tariff effects, highlighted downside risks to employment, and raised expectations for a potential Fed rate cut in September.
Federal Reserve Chair Jerome Powell addressed economic conditions, asserting that the impact of tariffs on prices is temporary and manageable. He emphasized the need for cautious policy adjustments, noting that one-off price rises should not lead to sustained inflation. His comments raised the likelihood of a Fed rate cut in September, with traders increasing the probability from 75% to 90%.