At the annual Jackson Hole gathering, U.S. Federal Reserve chair Jerome Powell dropped a hint that got everyone talking: the Fed might soon cut the key interest rate that shapes loans, mortgages, and business investments. 📉
Powell has been under pressure to ease money conditions for businesses and consumers — including from President Donald Trump — but he’s walking a tightrope. 🤔 On one side, lower rates can boost economic activity; on the other, rising tariffs risk pushing up prices just when the Fed wants to keep inflation in check.
Tariffs on imported goods can act like a hidden tax, making everyday items more expensive. At the same time, a restrictive interest rate cools inflation by making borrowing pricier. Now, Powell is watching both forces closely to strike the right balance. 📊
By signaling a possible rate cut, the Fed chair invited investors and markets to brace for change — but without triggering a sudden surge in inflation. 🔍 What comes next? All eyes will be on the Fed’s next moves as they aim to keep growth on track without letting prices run away. 🚀
Reference(s):
cgtn.com
