Federal Reserve Chair Jerome Powell hinted at a potential interest rate cut in the coming months to address slowing job growth and risks of higher inflation. However, he emphasized a cautious approach, basing decisions on inflation and unemployment data. The Fed faces pressure from President Trump to cut rates, but Powell reiterated the Fed's commitment to independence from political influence. Powell's comments sparked a stock market surge, with economists anticipating a rate cut in September. He also announced adjustments to the Fed's policy framework to better suit current economic conditions.

Prepared by Christopher Adams and reviewed by editorial team.