The stock market surged Friday after Federal Reserve Chair Jerome Powell signaled that interest rate cuts could be imminent, CNN reported. The Dow Jones Industrial Average climbed 860 points, or 1.93%, setting up its first record close since December 2024. The S&P 500 rose 1.6%, while the Nasdaq gained nearly 2%.
Speaking at the Jackson Hole economic symposium, Powell said “downside risks to employment are rising,” suggesting the Fed may need to ease policy in September.
Treasury yields fell sharply as investors priced in a 91% chance of a rate cut. The U.S. dollar weakened while Wall Street’s volatility index dropped, reflecting strong investor confidence.
🚨 BREAKING: Stock market surges as Federal Reserve Chairman Jerome Powell hints at a possible rate cut in September.
— TV News Now (@TVNewsNow) August 22, 2025
CNN: “The Dow is in record territory following a key speech by Jerome Powell, where he hinted at a possible rate cut.” pic.twitter.com/txYZLaRank
Analysts say Powell’s remarks indicate a likely 0.25% cut at the next Federal Open Market Committee meeting, a move expected to boost markets and ease borrowing costs.
The announcement comes amid slowing job growth and heightened pressure from the Trump administration for lower rates.
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TIPP Staff
