Federal Reserve Chair Jay Powell indicated during a speech at the annual Jackson Hole summit that the central bank is likely to cut its key interest rate soon due to slower economic growth and cooling inflation. Powell stated that the current economic conditions warrant a policy adjustment, as price growth has decelerated, the job market has softened, and demand for borrowing has weakened compared to pre-pandemic levels. The remarks were well received by markets, with the Dow Jones Industrial Average rising 300 points. The uncertainty lies in the extent and timing of the rate cuts, as Powell did not provide specific details. The U.S. economy appears to be transitioning into a more subdued phase following years of robust growth post-pandemic reopenings. The changing economic landscape has prompted the Federal Reserve to take action in order to support continued economic stability. More updates on this developing story are expected in the future.
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