Powell shock: Fed opens to a rate cut in September

The Fed sees the conditions to return to cutting interest rates as early as its next meeting in September. The message comes directly from the president of the US central bank, Jerome Powell, in his eagerly awaited speech in Jackson Hole, where he indicated how the balance of risks between employment and inflation has now shifted, opening the door to a change in monetary policy stance. August was a troubled month for the Federal Reserve, which in addition to Trump's pressure for rate cuts had to deal with the (for now pending) dismissal of Governor Lisa Cook by the President.