The Federal Reserve chair, Jerome Powell, gestures during a press conference in Washington DC on 30 July. Photograph: Jonathan Ernst/Reuters via Guardian
At the Jackson Hole symposium Federal Reserve Chair Jerome Powell indicated that the Fed could lower interest rates during September which triggered a significant market increase in the United States. The central bank adopted flexible inflation targeting as its new policy framework after discarding the 2020 "makeup" approach which permitted inflation to exceed 2%. The labor market indicates deceleration while rising tariffs create price pressures according to Powell who delivered this warning. The Fed will maintain its economic data-driven decision-making process despite President Trump's increasing political pressure against the institution and its independence.
Reference:
https://www.theguardian.com/business/2025/aug/22/jerome-powell-speech-jackson-hole
