Federal Reserve Chair Jerome Powell signals potential interest rate cut due to economic conditions at the Fed's annual conclave in Jackson Hole, Wyoming. For more context and news coverage of the most important stories of our day click here: https://www.msnbc.com/ » Subscribe to MSNBC: https://www.youtube.com/msnbc » Subscribe to MSNBC on TikTok https://www.tiktok.com/@msnbc » Subscribe to MSNBC on Instagram https://www.instagram.com/msnbc Download our new MSNBC app for the latest breaking news and daily he ...

Federal Reserve & Monetary Policy - President Trump calls for the resignation of Fed Governor Lisa Cook amidst mortgage fraud allegations [1][2] - The potential firing of Lisa Cook is seen as part of Trump's broader effort to influence the Fed and push for lower interest rates [4][10] - The market is currently pricing in three rate cuts by the end of the year, but concerns about inflation persist [14] - The Fed faces a difficult situation with conflicting signals from employment and inflation data [16] - The CME Group's Fed watch tool indicates around 80% probability of a September rate cut [12] Allegations Against Lisa Cook - Lisa Cook is accused of listing two different residences as her primary residence on mortgage applications [3][6] - The head of the Federal Housing Finance Agency (FHFA) has referred the allegations to the Justice Department [2][3] - It is noted that there may be circumstances where listing two primary residences is permissible, such as co-signing for a dependent [3][7] Market Expectations & Fed's Stance - The market anticipates Fed Chair Jerome Powell to slightly open the door to a rate cut in September [13] - Recent weak jobs numbers and downward revisions to hiring in May and June could tilt the scales towards a rate cut [14] - The minutes from the recent FOMC meeting revealed that most Fed members remain focused on inflation [11][13] - Only two out of twelve Fed members indicated that the risks of lower employment outweigh those of inflation [12]

Federal Reserve Chair Jerome Powell delivers remarks about the U.S. economy, his inflation outlook and potential interest rate forecasts at the annual Jackson Hole Economic Policy Symposium in Wyoming. #Fed #JeromePowell #WSJ ...

Monetary Policy & Framework - The industry observes an odd timing for a major new framework announcement from the Fed, suggesting it should be addressed by the incoming chairman after consultation [1][2] - The industry notes the Fed's past errors leaned towards excessive transparency and forecasting, leading to iatrogenic volatility, and suggests fewer dot plots and forecasts [2][3] - The industry suggests a return to a more vague and oracular approach, similar to Volcker and Greenspan, given the current challenge of preventing high inflation expectations from becoming embedded [4][5] - The industry emphasizes the importance of symmetry with respect to inflation and learning from the previous framework's shortcomings [6] - The industry highlights the need for careful consideration of the management of the maturity structure of the federal debt, especially when the Treasury and the Fed have conflicting objectives [7] Inflation & Interest Rates - The industry acknowledges persistent inflation above the 2% target, yet markets anticipate a Fed rate cut in September [8] - The industry notes evidence of economic weakening is likely driving market expectations for a Fed rate ease [9] - The industry interprets the market's anticipation of a 25 basis point cut in September as a likelihood, with possibilities of 50 basis points or zero being equally likely [10] - The industry cautions against certainty about future actions, as data could push towards a 50 basis point cut or further delay [11] Economic & Geopolitical Considerations - The industry expresses surprise at the Treasury Secretary's prescriptive stance on monetary policy, suggesting a 175 basis point cut [12][13] - The industry suggests elevated deficit spending, data center spending, reduced trade deficits, and higher asset prices may be raising the net demand for funds, potentially increasing neutral interest rates [15] - The industry expresses disappointment that President Trump hasn't leveraged frozen Russian reserves to drive a just peace with Ukraine [17][18]

Bessent said he isn’t calling for a series of interest-rate cuts from the Fed, just pointing out that models suggest a “neutral” rate would be about 1.5 percentage points lower https://t.co/7aVz2MtUQR ...

sharply lower in the probability of a fed rate cut next month markedly higher. So to today's data, give the all clear for the central bank and for the markets to give the all clear on the economy in terms of the impact from tariffs. Guy, what do you think.>> I'm not convinced they gave the all clear to the central bank. I don't think anything changed. I mean there was something in that inflation number for everybody.The headline number. People got very excited about. Then they looked at and said, well, wait ...

Monetary Policy - Treasury Secretary suggests the Fed should consider a larger, 50 basis-point (0.5%) cut in the benchmark interest rate next month [1]

Interest Rate Policy - Bank of England cuts key interest rate to 4% [1] - Market anticipates the FED will follow suit with similar rate cuts [1] Market Outlook - Potential impact on Bitcoin as suggested by Bitcoin Magazine [1]

Monetary Policy - Colombia's central bank unexpectedly held its key interest rate steady for the second consecutive meeting [1]

Monetary Policy - Bank of Japan held its benchmark interest rate steady [1] Inflation Outlook - Bank of Japan raised its inflation outlook [1] Economic Impact - Assessing the impact of Trump's tariffs [1]