What did Jerome Powell say today?
On August 22 2025, Powell warned the U.S. economy faces:
A challenging situation with tariff-driven inflation and slowing job growth.
He opened the door to a possible rate cut at the Fed’s September 16–17 meeting not committing, but definitely leaving it on the table .
Markets reacted strong stocks rallied, bond yields dropped, and traders ramped up expectations of a September rate cut to about 90% likelihood.