ECB and Fed Signal September Rate Cuts

European Central Bank (ECB) policymakers are increasingly backing a rate cut in September, citing easing price pressures and sluggish economic growth, with formal support expected soon. Concurrently, several Federal Reserve (Fed) officials, including Atlanta Fed President Raphael Bostic and Boston Fed President Susan Collins, are signaling a preference for multiple rate cuts by year-end, with a gradual approach. Fed Chair Jerome Powell is anticipated to confirm this dovish stance in his upcoming speech at the Jackson Hole symposium, positioning the central bank for a potential rate cut in September if economic conditions permit. Stock markets are responding cautiously, with mixed performances ahead of Powell's address, highlighting investor anticipation and sensitivity to the Fed's monetary policy direction.