Dow hits record high after Fed Chair hints at September rate cuts

Dow hits record high after Fed Chair hints at September rate cuts

The Dow Jones Industrial Average clinched a record high Friday for the first time this year hours after Federal Reserve Chair Jerome Powell hinted that the Fed may soon lower interest rates.

The Dow climbed 846 points, or 1.89%, from Thursday’s close to an all-time high of 45,631.74.

Both the broadly diversified S&P 500 and the tech-heavy Nasdaq have recorded more than 15 record highs in 2025.

Investors across the country watched Powell’s live streamed address at an economic symposium in Jackson Hole, Wyo., Friday, where he described the economic conditions facing Americans and the Fed. The data indicate that rising inflation and weakening employment are more likely than not, according to Powell, creating a “challenging situation.”

“When our goals are in tension like this, our framework calls for us to balance both sides of our dual mandate,” which he explained as “[fostering] maximum employment and stable prices for the American people.”

A moment later, however, after mentioning some positives about America’s current economic state, he still suggested that a review of the Fed’s policy stance – which hasn’t lowered interest rates since December – was in order.

“Nonetheless, with policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance,” he said.

Observers have taken Powell’s remarks to mean the central bank is looking at reducing interest rates at its September meeting, which the Fed would typically do to stimulate a slowing economy.

Lower interest rates encourage more spending and more borrowing, which can boost corporate profits and investor confidence, often supporting stock market growth.

President Donald Trump has been pressuring Powell to lower rates for months, yet Powell assured listeners Friday that if the Fed does lower interest rates, it will be because it is their best decision based on the data and not because of political pressure.

The members of the Federal Open Market Committee will “make these decisions based solely on their assessment of the data and its implications for the economic outlook and the balance of risks. We will never deviate from that approach,” he said.

Leave a Comment





Latest News Stories

Police Crime

Manhattan Police Reports

Disclaimer: Charges against each defendant are merely an accusation, with all defendants presumed innocent unless proven guilty in a court of law. On January 27, officers stopped Marshbanks, Turquoise E (42)...
Manhattan Township

Manhattan Township Bridge Project Saved After County Commissioner Intervenes with Forest Preserve

A critical bridge replacement project in Manhattan Township, jeopardized by a stalemate with the Will County Forest Preserve District and the potential loss of $500,000 in funding, has been saved...
Manhattan Township

Soltage Solar Farm Clears Township Hurdle with Detailed Landscaping Plan

A proposed solar farm by Soltage Renewable Energy has cleared a key local hurdle after its representative presented a detailed landscaping and aesthetics plan that satisfied the Manhattan Township Board....
Manhattan Township

Solar Developer Commits Up to $800,000 for Smith Road Improvements

Summit Ridge Energy, a solar farm developer, has committed to providing up to $800,000 for the engineering and construction of improvements along Smith Road, Manhattan Township officials announced Tuesday. The...
Manhattan Township

Meeting Briefs: Manhattan Township for February 11, 2025

Baker Road Bridge Work Imminent: Highway Commissioner Jim Baltas reported that the Road District crew will soon begin trimming trees to prepare for the upcoming construction on the Baker Road Bridge....
Manhattan Township

Manhattan Township to Review Solar Farm Proposal at Special Meeting

Manhattan Township will host a special meeting Jan. 28 to review a proposed solar farm development at the corner of Cherry Hill and Manhattan roads. Soltage Renewable Energy Provider has...
Manhattan Township

Manhattan Township Briefs

Township Approves $81,000 Assessor Budget: Manhattan Township trustees unanimously approved the 2025-2026 assessor's office budget request of $81,000 during their Jan. 14 meeting. The budget includes increases for employee salaries...
Jackson Township

Jackson Township Property Values to Rise 13% in 2025 Assessment

Jackson Township property owners will see assessed values increase by 13.18% in the upcoming assessment cycle, Assessor LeGrett reported at the township's January 8 monthly meeting. The increase, which will...
Jackson Township

Jackson Township Advances Infrastructure Projects Despite Winter Conditions

Jackson Township continues progress on major infrastructure improvements while maintaining winter road operations, officials reported at the January 8 township meeting. Supervisor Matt Robbins updated the board on the ongoing...
Jackson Township

Jackson Township Meeting Briefs

Meeting Approvals: Jackson Township trustees unanimously approved December 2024 meeting minutes and the monthly financial statement during their January 8 meeting. The board also approved the assessor's 2025 budget as...
Police blue and red flashing light on the car in the street

Manhattan Police Reports

Disclaimer: Charges against each defendant are merely an accusation, with all defendants presumed innocent unless proven guilty in a court of law. On November 25, officers cited Parker, Kenneth R (53) of...
Blue flasher light of siren of police car

Manhattan Police Reports

Disclaimer: Charges against each defendant are merely an accusation, with all defendants presumed innocent unless proven guilty in a court of law. On November 17, officers cited Randle, Devante (24) of...