Federal Reserve Chair Jerome Powell indicated a potential for interest rate reductions starting in September, citing a 'shifting balance of risks' between unemployment stability and inflation pressures accentuated by tariffs and deportations. While emphasizing cautious policy adjustments, Powell's remarks rallied financial markets, with major indices and cryptocurrencies responding positively. The speech underscored complex labor market dynamics and inflation uncertainties, highlighting the Fed's continued monitoring before acting, amidst president Trump’s vociferous calls for rate cuts and political contention surrounding Fed leadership.