Powell Signals Imminent Rate Cuts, Sending US Stocks Soaring

Federal Reserve Chair Jerome Powell`s speech at the Jackson Hole Economic Symposium signaled upcoming interest rate cuts, causing a surge in US stock markets. Powell acknowledged the need for policy adjustments, citing diminishing inflation risks and increasing employment risks. While the exact timing and extent of the cuts will depend on economic data, market analysts predict multiple cuts in the coming months, with the first one potentially occurring at the September Federal Open Market Committee (FOMC) meeting. Bond yields decreased following Powell`s remarks, reflecting positive investor sentiment towards the announced policy shift.