Powell dey plan September rate cut, dey protect Fed independence
Federal Reserve Chair Jerome Powell talk for Jackson Hole symposium say di Fed fit cut interest rates as early as their September meeting to handle di slow down for U.S. economy. Output growth drop to 1.2% annual pace for H1 2025, from 2.5% di year before, and hiring demand don weak, fit make unemployment risk high. Powell talk say make dem cut rates careful and slowly so inflation no go start again, also talk say tariffs dey still push goods prices up. President Trump pressure Fed make dem cut rates steep—him talk say lower rates go reduce interest on di $37 trillion debt—and him threaten to remove governors wey no gree, including Lisa Cook. Cleveland Fed President Beth Hammack and other officials still talk say e important make Fed dey independent to make decision on rates.
Neutral
Powell indication say September rate go fit drop fit help risk assets as e go reduce borrowing cost, but as e dey talk say make dem take am slow to prevent inflation e cool down better immediate wahala. Trump pressure Fed governors plus threat to shake dem board add political wahala, e make people dey cautious. Traders go still dey see small positive mind from rate cut wey go happen, but wetin everybody dey focus be price stability and central bank independence, so market go react balanced. For history, when dem talk say dem go cut rate, short-term rally dey happen but political palaver dey too dey cancel good things, na why e go be neutral outlook.