Powell Opens the Door to Rate Cuts
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Investors’ expectations of lower interest rates were reflected in the major stock indexes and lower government bond yields.
This striking chart from the Brooking Institution's Robin Brooks lays out that no matter Fed Chair Jerome Powell articulates, there are issues in the Treasury market that lie beyond short-term interest rates.
While Trump frames the issue as consumer pain, Wharton’s Joao Gomes told Fortune that cheaper borrowing would also ease interest payments on the government’s $37 trillion debt burden—likely a central motivation.
The dollar was trading steady as investors wait for clues on the Federal Reserve's plans for interest-rate cuts. The Fed's meeting minutes will be released at 1p.m. Eastern time. However, the decisive
Federal Reserve Chair Jerome Powell's closely watched Jackson Hole speech on Friday boosted optimism in markets that the U.S. central bank is poised to ease rates, sending investors to pile into riskier assets and interest-rate-sensitive sectors.