Focus: Jackson Hole Global Central Bank Annual Meeting - Powell Hints at Imminent Rate Cuts

Kevin Hassett, Chairman of the National Economic Council and White House economic advisor, stated in a media interview that Powell's recent dovish remarks are "reasonable," and that Federal Reserve rate cuts would be a sensible move.

He simultaneously noted that Powell cannot regain Trump's favor.

Regarding the timeline for determining the Fed chair position, he expects it will take several months before Trump makes a final decision on the candidate for this role.

Last Friday, Federal Reserve Chairman Powell indicated at the Jackson Hole central bank symposium that evolving economic risks provide the Fed with more compelling reasons to cut interest rates.

These remarks positioned Powell within the "dovish" camp of the Federal Open Market Committee responsible for setting interest rates, signaling his potential support for a 25 basis point rate cut at the Fed's next meeting in September.

Although Powell acknowledged that the impact of government trade wars on consumer prices is now "clearly visible," he suggested this impact is unlikely to persist and may represent only a one-time shock that the central bank can overlook.

He stated: "Given that the labor market is not particularly tight and faces increasing downside risks, such an outcome (of sustained inflation increases) seems unlikely to occur." He added, "Inflation faces upside risks while employment faces downside risks - this presents a quite challenging situation."