Fed rate cut odds rise after Powell's Jackson Hole speech

[Metal Shiny Federal Reserve System Symbol on Finance Background (FED)]
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The odds of a rate cut in September rose after Federal Reserve Chair Jerome Powell's speech at Jackson Hole.

The chance of a September rate cut was at ~71% before the speech and rose to ~93% after it.

Chances of a September rate cut had plunged below 50% in July after Powell's hawkish remarks and had fallen below 40% after a stubborn inflation report. But the August jobs data has caused a significant reversal, sending the odds back above 80%.

Wall Street also gained ground on Friday as investors reacted positively to Federal Reserve Chair Jerome Powell's speech at Jackson Hole.

The rise in rate cut odds comes at a time when U.S. President Donald Trump has repeatedly criticized the Fed and Chair Powell for not lowering interest rates.

After Powell's speech at the Jackson Hole Symposium, it is now widely expected that the Fed will slash its rates by a quarter point.

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