US stocks closed mixed after Federal Reserve Chair Jerome Powell stated the economy is in a solid position and tempered expectations of a rate cut in September. Powell emphasized the difficulty of gauging how tariffs might impact inflation and the need for efficient timing. Traders’ expectations of rate cuts in September dropped to 45%, down from 63% yesterday. The Fed will have two sets of inflation and jobs reports to dissect before its next rate decision in mid-September. The September meeting will prove pivotable in terms of its way forward for monetary policy.
The Federal Reserve has maintained its current interest rates for a fifth consecutive time.
