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Fed Chair Powell faces fresh challenges to Fed independence amid potential rate cuts
Now that Federal Reserve Chair Jerome Powell has signaled that the central bank could soon cut its key interest rate, he faces a new challenge: how to do it without seeming to cave to the White House’s demands. For months, Powell has largely ignored President Donald Trump’s constant hectoring that he reduce borrowing costs. Yet on Friday, in a highly-anticipated speech, Powell suggested that the Fed could take such a step as soon as its next meeting in September. It will be a fraught decision for the Fed, which must weigh it against persistent inflation and an economy that could also improve in the second half of ... (full story)
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Fed Chair Powell spoke on the “Economic Outlook and Framework Review” at Jackson Hole today. The key phrase in the economic outlook section was that “with policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance.” This signals that a rate cut is squarely on the table for the September ...
ECB President Lagarde: central-bank independence is critically important
From theasiaeconomist.substack.com | Aug 24, 2025
Fed Chair Powell signaled perhaps more clearly than expected in his Jackson Hole speech on Friday that the Fed might cut rates in September, which triggered a rally in equities and fixed income and the sharpest daily drop in the dollar’s value in three months. “The effects of tariffs on consumer prices are now clearly visible”, Powell said, but only after ...
