The Federal Reserve may cut interest rates in September.
In his final Jackson Hole keynote address on Aug. 22, Fed Chair Jerome Powell stated that current conditions, mainly a deteriorating labor market, “may warrant” a change in monetary policy.
“With policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance,” Powell said in prepared remarks.
Plans may change, he said, since “monetary policy is not on a preset course”—the central bank still has another jobs report and a batch of inflation numbers before next month’s Federal Open Market Committee meeting—but the financial markets are overwhelmingly betting on a quarter-point rate cut….