Fed Chair Powell Signals Possible September Rate Cut Amid Shifting Economic Risks

Federal Reserve Chair Jerome Powell indicated that changing economic conditions may prompt an interest rate cut at the upcoming September FOMC meeting. Powell emphasized the “shifting balance of risks” between inflation and employment, noting that a softening labor market and cooling inflation could warrant policy adjustment. Economists widely expect a rate reduction as the Fed aims to support growth and maintain stability. Investors will closely watch the September 16–17 meeting for the central bank’s official decision.