♦️ Federal Reserve Chairman Jerome Powell indicated that the door is open for an interest rate cut in September, warning of escalating risks threatening the labor market, despite ongoing inflationary pressures.

♦️ Powell explained that the employment data for July showed a slowdown in the pace of hiring more than expected, noting that layoffs could increase rapidly if economic conditions deteriorate, but he simultaneously emphasized that the tariffs imposed by President Donald Trump could fuel ongoing inflationary pressures, necessitating caution in monetary policy.

♦️ Powell affirmed that the Fed seeks to strike a balance between growth and price stability, indicating that monetary policy remains constrained, but it may be adjusted if risks to employment increase.

♦️ Investors currently anticipate a nearly 75% chance of an interest rate cut in September, although Powell avoided confirming this directly, and his remarks quickly reflected in the markets, as Treasury yields fell, stocks rose, and the dollar declined, while investors try to read his cautious stance amid increasing political pressures.