U.S. economic data is giving the Federal Reserve the green light to cut interest rates, financial markets are aligned for the first move, and the central bank all but gave the game away on Wednesday when a readout of its July meeting showed a “vast majority” of policymakers agreed the policy easing likely would begin next month.
With all that in place, Fed Chair Jerome Powell’s goal in his keynote speech Friday to the Kansas City Fed’s annual Jackson Hole research conference may be less about further shaping expectations and more about assessing where the economy stands ahead of what he has called a “consequential” first step.
With all that in place, Fed Chair Jerome Powell’s goal in his keynote speech Friday to the Kansas City Fed’s annual Jackson Hole research conference may be less about further shaping expectations and more about assessing where the economy stands ahead of what he has called a “consequential” first step.
“I don’t think he needs to do a lot beyond the press conference in July,” said Richard Clarida, a former Fed vice chair who is now global economic adviser for Pimco, referring to how Powell leaned strongly toward a rate cut at the Sept. 17-18 meeting in remarks to reporters after the July 30-31 meeting.
