The New York stock market started to rebound as expectations for interest rate cuts increased. In this regard, Jerome Powell, the Chair of the U.S. Federal Reserve (Fed), hinted that he could lower the benchmark interest rate at next month's Federal Open Market Committee meeting.
According to the New York Stock Exchange on the 22nd (local time), the Dow Jones Industrial Average opened at 44,952.88, up 167.4 points (0.37%) from the previous session. The Standard & Poor's (S&P) 500 index opened at 6,384.59, up 14.4 points (0.23%), while the NASDAQ Composite Index started at 21,139.82, increasing by 39.5 points (0.19%).
On that day, during a keynote speech at the Economic Policy Symposium in Jackson Hole, Wyoming, Powell said, "High borrowing expenses are burdening the economy, the labor market is slowing, and inflation risks are being contained," and added, "We may need to adjust our policy stance."
In this context, The New York Times reported, "The Fed has sent the strongest signal yet that it is preparing to resume interest rate cuts," and emphasized the vulnerabilities in the labor market as inflation accelerates.
Meanwhile, the Fed lowered the benchmark interest rate by 0.25 percentage points to 4.25-4.5% in December last year with the aim of stabilizing prices and expanding employment, and it has been frozen a total of five times until last month. This was due to concerns that the impact of the global tariffs implemented by the Donald Trump administration, which intensified in April, would stimulate prices and create inflation.