- Fed Chair Jerome Powell struck a more dovish tone on monetary policy yesterday, reassuring investors that the central bank remains attentive to both inflation and a softening labor market. Speaking in Philadelphia, Powell noted slowing payroll gains and rising employment risks but said longer-term inflation expectations remain anchored near the Fed’s 2% goal—remarks that lifted odds of another rate cut this month to 96%. However, markets wavered after President Trump accused China of economic hostility over soybean purchases and threatened new restrictions.
Jerome Powell calmed the fraying nerves of investors yesterday as he set a more dovish tone than expected on monetary policy and the easing of interest rates. However, the relief for Wall Street may prove to be short-lived, as President Trump reignited tensions with China over soybeans.
