22/08/2024
What to look for at Fed's Jackson Hole symposium
ACTION IN JACKSON
The marquee event is Fed Chair Jerome Powell's speech Friday morning.
Investors hope he will give a clearer steer on whether he feels inflation has cooled enough to justify an interest rate cut next month, and if his worries about a rising unemployment rate could make that first reduction in borrowing costs a big one.
Most analysts expect the former and not the latter, but as Deutsche Bank economists note, "it will be difficult for Powell to pre-commit to a particular trajectory at Jackson Hole." Powell has pledged to be data-dependent, and there is lots of economic data before the Fed's Sept 17-18 meeting.