Powell Hints at Rate Cut, and Markets Surge

Fed chief Jerome Powell signaled Friday that he's ready to cut interest rates in the near future, though he offered no specifics and plenty of caveats in a closely watched speech. Still, the comments were enough to send markets surging, with the Dow rising more than 700 points as his comments from Jackson Hole, Wyoming, surfaced, reports CNBC.

• "The balance of risks appears to be shifting," Powell said, per the Wall Street Journal. He added that "it is a curious kind of balance that results from a marked slowing in both the supply of and demand for workers."

• Powell also warned that President Trump's trade policies—think tariffs—could cause inflation to rise, notes the Washington Post. That would make the Fed less likely to cut rates. But all in all, "the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance," Powell said.
• The Journal parses it this way: "Powell said tariff-related costs will continue to accumulate in the economy, but for the first time suggested somewhat greater confidence that the effects of higher goods prices would be relatively short-lived."
• Trump has been aggressively pressuring Powell to cut rates for months, but Powell has resisted.