Overview
- At Jackson Hole, Jerome Powell said the balance of risks has shifted, signaling that a rate cut could come as soon as the September meeting.
- U.S. stocks rallied and Treasury yields fell after his remarks, with investors increasing bets on near‑term easing and the Dow reaching a new high.
- President Trump intensified criticism of the central bank, threatened to fire Governor Lisa Cook, and shared a Truth Social graphic targeting Fed officials.
- FHFA Director William Pulte’s mortgage‑fraud allegations against Cook are under Department of Justice review, while law permits removal of Fed governors only for cause.
- Officials from Europe and elsewhere cautioned that political encroachment on the Fed could undermine central‑bank independence and destabilize financial markets.