Here’s What a Federal Rate Cut Means for Small Businesses, According to Analysts

In his annual address in Jackson Hole, Wyoming, on Friday, Federal Reserve Chair Jerome Powell indicated that, despite “sweeping changes” in economic policy, a possible interest rate cut could come at the Fed’s next meeting in September.

“With policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance,” Powell said.

Related: A Big 4 Firm Is Cutting Back on Entry-Level Hiring, According to a Leaked Report

The Fed has held rates between 4.25% and 4.5% since December 2024.

EY-Parthenon Senior Economist Lydia Boussour told Entrepreneur in an email that the Fed’s focus is “shifting from inflation to the labor market,” and Powell used his

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