U.S. Stocks Slide as Fed Chair Signals Patience on Rate Cuts

U.S. stocks closed lower on Friday after the Federal Reserve chair delivered a cautious message on interest rates at the annual Jackson Hole economic symposium. In his speech, the Fed chair said the central bank is in no rush to cut rates, citing still-solid inflation and a resilient labor market. He added that any future moves would depend on incoming data, rather than a fixed schedule. The remarks dampened hopes among some investors for a rate cut as soon as next month. Wall Street’s main indexes gave up earlier gains and finished the session in the red. The Dow Jones Industrial Average fell by roughly 0.4%, while the S&P 500 and the Nasdaq each dropped about 0.5%. Traders now see a lower probability of a rate cut at the Fed’s next meeting in September, according to futures markets. The dollar edged higher, while Treasury yields ticked up slightly following the speech. Analysts said the Fed chair’s tone was balanced but not as dovish as some had hoped. “He kept the door open, but he also made clear the bar for quick action is high,” one market strategist noted. The Jackson Hole gathering, held annually in Wyoming, is closely watched because the Fed often uses it to signal major policy shifts. This year, the focus was on when—and how fast—the central bank might ease borrowing costs. For now, investors are bracing for more volatility as they await the next round of inflation and jobs data due in the coming weeks.