The Commercial Real Estate Alpha Site

U.S. stocks climbed Friday after Fed Chair Jerome Powell signaled the central bank could be ready to trim rates at its upcoming September 16 meeting. Speaking in Jackson Hole, Powell characterized the current policy stance as “restrictive,” suggesting borrowing costs may be high enough to dampen both consumption and investment. That hint of a shift was enough to lift markets out of a multi-day slump, as traders welcomed the prospect of easier monetary conditions.

The implications are two-sided. Lower borrowing costs could provide a jolt to consumer demand and business activity, but they also risk reviving inflation at a moment when tariffs and weak job growth are already complicating the picture. Powell noted that the balance of risks has shifted toward the labor market, citing the recent unexpected soft jobs report as evidence. Markets also got an extra boost Friday after Canada announced it would roll back retaliatory tariffs on U.S. goods, reinforcing hopes for a more supportive policy backdrop.