By John Meyer, consultant in financial affairs – Eurasia Business News, August 22, 2025. Article no. 1733
The U.S. stock market surged following Federal Reserve Chair Jerome Powell’s remarks at the Jackson Hole Symposium, where he suggested the possibility of an interest rate cut at the upcoming September Fed policy meeting. Powell indicated that, while a cut is not guaranteed, the Fed is closely monitoring a shifting balance of risks, particularly the weakening labor market and persistent inflation pressures. This dovish tone caused investors to boost bets on a September rate reduction, with markets pricing in a nearly 90% probability of a cut—up sharply from previous estimates.
“The balance of risks appears to be shifting,” Powell said. While labor markets appear to be stable, “it is a curious kind of balance that results from a marked slowing in both the supply of and demand for workers.”
Powell said tariff-related costs will continue to accumulate in the economy, but for the first time suggested somewhat greater confidence that the effects of higher goods prices would be relatively short-lived.
The Dow Jones Industrial Average jumped by 860 points (about 1.93%), reaching a record-high close around 45,681.64—its first record close of the year.
The S&P 500 rose 1.6%.
The Nasdaq Composite gained 1.95%.
Bond markets also responded, with Treasury yields dropping as investors sought to lock in rates ahead of a potential cut, and the U.S. dollar weakening slightly.
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Gold traded around $3,326 to $3,375 per ounce through the day, reflecting some volatility but staying below the $3,400 mark.
Silver was priced at approximately $38.98 per ounce, up about 2.2% from the previous day. This represents a notable yearly gain of over 30%.
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Powell’s speech marked a notable shift for the Federal Reserve, which had kept rates steady throughout 2025 amid concerns over tariffs and inflation, but is now signaling openness to lowering rates in response to emerging signs of labor market softness. Major indexes, especially tech stocks, rebounded after several days of losses.
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