Major brokerages, including Barclays, BNP Paribas and Deutsche Bank, now expect a 25-basis-point U.S. Federal Reserve rate cut in September following Chair Jerome Powell's shift in tone at Jackson Hole toward rising risks in the labor market.

Now that Federal Reserve Chair Jerome Powell has signaled that the central bank could soon cut its key interest rate, he faces a new challenge: how to do it without seeming to cave to the White House's demands.

The next US Federal Reserve (Fed) meeting is scheduled for September 16-17, 2025. The meeting will conclude with an interest rate decision announcement on September 17, which will be followed by a press conference from the Fed Chair.