AUGUST 25, 2025 – – FOMC JACKSON HOLE CONFERENCE
The annual Jackson Hole conference took place last week where Fed Chair Jerome Powell indicated that an interest rate cut is possible in September. He did note the high level of uncertainty (tax, trade and immigration), which is leading to caution within the decision-making process. “The balance of risks appear to be shifting” between the Fed’s targets of full employment and low inflation, which has been interpreted as a mild indicator of an upcoming change in monetary policy.
Powell’s concern is the return of stagflation, high prices and high unemployment along with stagnant economic growth. But he pointed out that the labor market is still in good shape and the economy has shown resilience. The Fed has held the benchmark interest rate between 4.25 and 4.5 percent since December.
The Fed is scheduled to meet again on September 16-17. If rates come down, it will be the first time in 2025.