What did Fed Chair Jerome Powell say about interest rates?

Powell hinted that an interest rate cut could be on the table at the Federal Reserve's September meeting.

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Fed Hints at Rate Cut, Wall Street Braces for Volatility

Q: How has recent economic data affected investor confidence in the Fed's policy?

Weak labor market data has boosted investor confidence that the Fed may adopt a more dovish stance and cut rates in September.

Q: What is the significance of Nvidia's upcoming earnings report?

Nvidia's $4 trillion valuation has been a key driver of Wall Street's recent record highs, and investors will be watching for any potential impact from its recent revenue-sharing deal with the U.S. government.

25 Aug

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Summary

Fed Chair Powell suggests interest rate cut possible in September
Weak labor market data boosts investor confidence in dovish Fed
Nvidia earnings eyed as AI powers Wall Street's record highs

Fed Hints at Rate Cut, Wall Street Braces for Volatility

On August 25, 2025, Wall Street is bracing for a lower open as investors respond to recent comments from Federal Reserve Chair Jerome Powell. In the previous trading session, Powell had hinted that an interest rate cut could be on the table at the central bank's September meeting.

Recent economic data suggesting labor market weakness has bolstered investor confidence that the Fed may adopt a more dovish stance next month. However, a majority of policymakers have warned that U.S. tariffs could contribute to inflationary pressures in the coming months.

Upcoming economic reports, including the Personal Consumption Expenditures Price index and nonfarm payrolls data, will be closely watched for clues on the Fed's next move. As one analyst noted, "As long as we show continued cracks in the labor market, the cut in September will happen, barring some egregiously high inflation numbers."

The potential impact of the Fed's decision has already prompted major brokerages to revise their expectations, with several now anticipating a 25-basis-point rate reduction in September. Traders are currently pricing in a 79.6% chance of a Fed rate cut next month.

Amid the market volatility, the spotlight will also be on Nvidia's earnings report on Wednesday. The chip giant's $4 trillion valuation has been a key driver of Wall Street's recent record highs, and investors will be watching for any potential impact from its recent revenue-sharing deal with the U.S. government.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.