Powell Hints at Dovish Shift: Potential Interest Rate Cut This Year

Federal Reserve Chair Jerome Powell’s speech at the 2025 Jackson Hole Global Central Bank Meeting signals a potential shift toward dovishness, suggesting a possible interest rate cut in September. Research by Guotai Junan Securities reveals insights from his remarks, highlighting concerns about rising inflation risks and the adaptation of the U.S. monetary policy framework for greater flexibility. The report suggests Powell’s reassessment of the labor market, acknowledging significant short-term employment risks. These factors may lead to a change in monetary policy strategy.