Federal Reserve Chair Jerome Powell hinted at a possible interest rate cut next month due to rising job market risks. Investors now anticipate a quarter-point cut in September and half a percentage point cut by year-end. Powell cited a need to carefully consider policy changes amid a shifting economic landscape. U.S. stocks rose after his remarks, anticipating a rate cut. President Trump criticized Powell for being slow to act, demanding immediate rate cuts. Trump intensified his pressure on the Fed, calling for Powell and Fed Governor Lisa Cook to resign. A DOJ investigation into Cook’s mortgages raised further controversy. Powell’s remarks sparked internal debate within the Fed, with some policymakers hesitant to cut rates. Powell received a standing ovation despite Trump’s ongoing criticism and pressure for resignations. Powell reaffirmed his commitment to lead the Fed until his term ends next May. The Fed’s strategic framework emphasizes the importance of price stability alongside maximum employment. Fed officials have kept benchmark interest rates steady this year, awaiting the impact of economic policies on inflation. Former Fed Governor Randall Krozsner noted a potential slowdown in the labor market and emphasized the need to adjust restrictive policies accordingly.

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