Federal Reserve Chair Jerome Powell’s announcement regarding interest rate cuts has significant effects on the U.S. dollar and stock markets. Goldman Sachs predicts that the dollar will continue to weaken due to expectations of lower interest rates, which diminish its attractiveness for yield-seeking investors. Conversely, stock markets reacted positively, with substantial gains in the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average, fueled by hopes for reduced borrowing costs that could enhance economic activity and corporate profits. Powell emphasized that the timing of rate cuts depends on incoming data and economic risks, with the next policy decision scheduled for September 18, 2024. Investors are closely watching economic indicators, including the August jobs report, to assess the possibility of larger cuts.