U.S. Fed Chair Powell hints at interest rate cut
發佈日期: 2025-08-23 20:47
TVB News
U.S. Federal Reserve Chairman Jerome Powell on Friday opened the door slightly to lowering a key interest rate in the coming months but gave no hint on the timing.
Powell has been under pressure to cut rates by President Donald Trump but suggested the central bank will proceed cautiously as it evaluates the impact of tariffs and other policies on the economy.
Speaking at the Fed's annual economic symposium in Jackson Hole, Wyoming, Powell warned of risks from rising unemployment and higher inflation.
Powell suggested that with hiring sluggish, the job market could weaken further.
Said Powell: "Our policy rate is now 100 basis points closer to neutral than it was a year ago. And the stability of the unemployment rate and other labour market measures allows us to proceed carefully as we consider changes to our policy stance. Nonetheless, with policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stances."
The Fed has three more meetings this year - next month, in late October, and in December, and it's not clear if the any cut will take place at those meetings.
Trump has repeatedly insulted Powell and has urged him to cut rates, arguing there is "no inflation" and saying that a cut would lower the government's interest payments on its US$37 trillion debt.
He also told reporters that he would fire Fed Governor Lisa Cook if she did not step down over mortgage fraud allegations.
U.S. stocks closed sharply higher on Friday in response to Powell's remarks.
The Dow Jones Industrial Average surged 1.89 percent, to close at 45,631.74. The tech-heavy Nasdaq Composite jumped 1.88 percent, to 21,496.54.
