US Federal Reserve Chairman Jerome Powell opened the door today to a potential interest rate cut at the central bank’s September 16–17 meeting, while cautioning that the decision will depend on incoming data on jobs and inflation.
Speaking at the Fed’s annual Jackson Hole symposium, Powell acknowledged rising risks to the labor market, noting a rare “equilibrium” where both job supply and demand have slowed.
He warned that downside risks to employment could “materialize quickly” if conditions worsen.
At the same time, Powell pointed to lingering inflation concerns, citing potential upward pressure on prices from tariffs.
“This is a risk that must be assessed and managed,” he said.
The Fed has kept its benchmark interest rate steady at 4.25%–4.50% since December. Inflation remains above the 2% target and could climb further due to new tariffs, Powell noted.
His remarks suggest the Fed is weighing a cautious path: supporting the labor market without allowing inflation to accelerate.
The next jobs report, due September 5, along with consumer and producer price data the following week, will be key in shaping the decision.
Meanwhile, political pressure continues. President Donald Trump has repeatedly demanded immediate rate cuts, dismissing inflation risks, and recently called on Powell — and Fed Governor Lisa Cook — to resign.
Follow The Times Kuwait on X, Instagram and Facebook for the latest news updates
