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President Donald Trump has been calling for interest rate cuts for months. Federal Reserve Chair Jerome Powell finally seems ready to do just that.
“With policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance,” he said during his annual speech in Jackson Hole, Wyoming..
The Jackson Hole conference is typically a major event in the world of central banking in which the Fed chair sets the tone for the rest of the year, but it has a radically different backdrop this year.
Powell, who has been at odds with trump over interest rates, will be leaving his post when his term comes up next year. This is final Jackson Hole speech.
Stocks rose sharply in response to Powell's remarks.