‘8/25/2025 ‘He Blinks’
Russell E. Towne | August 25, 2025
He Blinks?
An interest rate reduction in September was suggested by Fed Chairman, Jerome Powell, in a speech at the central bank's annual symposium in Jackson Hole, WY, this past Friday, 8/22/2025 says Realtor.com 8/22/2025. In a change of position, Powell stated that the “balance of risks" in the economy could be moving away from inflation and toward rising job layoffs. Further, Powell went on ‘to blink’ with these words, “the shifting balance of risks may warrant adjusting our policy stance." In other words, the fed may be lowering rates. Pundits believe lower rates would benefit the economy in many ways, including.
-Lowering the massive expense of Government bond interest.
-Spur the real estate market with a lower cost of money.
-Stimulate small cap companies to expand and hire employees.
The good news…
The massive move in the markets on Friday, 8/22/2025, after the speech,
suggests that… Powell’s blink is real.
Now…
Let’s see, if Powell’s blink is a bite….
and not a bark.
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The opinions expressed in this material do not necessarily reflect the views of LPL Financial and based on the political content of this material are for general information only and are not intended to provide specific advice or recommendations for any individual. The economic forecasts set forth in this material may not develop as predicted. All indices are unmanaged and may not be invested into directly.
Russell E. Towne, LPL Financial Advisor, is a registered representative with and Securities and Advisory Services offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC.
The opinions expressed in this material do not necessarily reflect the views of LPL.