22.08.2025 Market in Green and Here’s Why:
Jerome Powell Opens the Door to Interest Rate Cuts — the Market Immediately Reacts with Gains! 📈
During the Jackson Hole Symposium on August 22, 2025, Federal Reserve Chair Jerome Powell noted that the current economic situation — balancing the risk of rising inflation against a weakening labor market — may justify "adjusting our stance" on monetary policy.
"The risks for inflation are tilting towards an increase, and for employment towards a decrease — this is a challenging situation."
After this speech, the markets reacted positively:
• U.S. stock indices moved up — the S&P 500 gained about 1.3%, Dow Jones over 2%, and Nasdaq nearly 1.7%.
• Interest in the dollar and short-term bonds decreased — the yield on 2-year securities fell by about 11 basis points to 3.68%.
Conclusion: Powell subtly suggested that the Fed may be ready for rate cuts as early as September — and investors responded with strong demand for riskier assets.
