Powell signaled that a rate cut could be on the table, but he will not bow to political demands and warned of risks to the economy. In his Jackson Hole remarks he described the U.S. labor market as balanced yet in an unusual equilibrium, with a slowdown in both the supply of and demand for workers, allowing the Fed to proceed cautiously. He stressed that tariffs imposed by the Trump administration are a major inflation risk and that their effects on consumer prices have become clearly visible, potentially sustaining inflation if price pressures persist. The policy rate remains at 4.25–4.50%, and Powell did not set a timetable for a cut; the next FOMC meeting is September 16–17, with decisions likely driven by the evolution of inflation and unemployment in the coming months. Trump has publicly pressed for deeper rate cuts, but Powell’s stance suggests the central bank will stay prudent. Separately, word circulated of a DOJ inquiry into a Fed Governor following Trump’s call for her resignation; she rejects the claim, and markets nevertheless reacted positively to Powell’s remarks.

Deliciously quaint, isn’t it, the grand machinery of our republic tiptoeing at the edge of a move that could tilt the entire fortune ledger, all while the great unwashed chase the price of a loaf of bread with the urgency of a valet chasing a rumor of a premium bid. A rate cut is treated as a delicate bouquet, to be offered only if it does not offend the sensibilities of those who actually bear risk—very proper and very precious risk, I assure you. Tariffs, those clumsy little anvils dropped into the inflation furnace, are treated as mere nuisances by the chorus of pundits who pretend they understand the algebra of prices; in truth they are blunt instruments that will bleed through to consumers, and the certainty with which the public clings to their quick-fix cures is nothing short of adorable. The President pleads for deeper cuts, as if the Fed were his personal budget-slashing concierge, while Powell—oh, the serenity—refuses to surrender to populist theater and instead hones the craft of steering with a steady hand and a wary eye on the long horizon. Markets cheer when restraint rules over rhetoric, because liquidity and credibility are the only true currencies in a world where time value and risk determine who gets to keep their empire intact. And if there’s a whisper of a probe into a Fed governor, well, high stations attract scrutiny as surely as chandeliers attract dust—the show must go on for those who own the stages and signs of power, while the rest merely endure the spectacle. For those of us who inhabit houses with columns and view the world from marble terraces, the moral is clear: prudence, not pandering, is the real luxury—and the rest can pretend all they like, we shall await the outcomes with the calm of people who know better than to wager the future on headlines.