{"id":7488,"date":"2025-08-23T22:24:16","date_gmt":"2025-08-23T22:24:16","guid":{"rendered":"https:\/\/tezgyan.com\/index.php\/2025\/08\/23\/jerome-powells-jackson-hole-speech-in-focus-will-it-set-tone-for-us-feds-next-move-economy-news\/"},"modified":"2025-08-23T22:24:16","modified_gmt":"2025-08-23T22:24:16","slug":"jerome-powells-jackson-hole-speech-in-focus-will-it-set-tone-for-us-feds-next-move-economy-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/08\/23\/jerome-powells-jackson-hole-speech-in-focus-will-it-set-tone-for-us-feds-next-move-economy-news\/","title":{"rendered":"Jerome Powell\u2019s Jackson Hole Speech In Focus: Will It Set Tone For US Fed\u2019s Next Move? | Economy News"},"content":{"rendered":"


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Global markets are closely watching Federal Reserve Chair Jerome Powell\u2019s keynote at the Jackson Hole symposium on Friday; Key points for investors<\/h2>\n
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US Federal Reserve Chair Jerome Powell. (Photo Credit: AP)<\/p>\n<\/figure>\n

Jerome Powell\u2019s Jackson Hole Speech:<\/strong> Global markets are closely watching Federal Reserve Chair Jerome Powell\u2019s keynote at the Jackson Hole symposium on Friday, with investors hoping for clues on whether the Fed will signal a rate cut at its September meeting. The event, running from August 21\u201323, marks Powell\u2019s eighth and final Jackson Hole address, as his term ends in May 2026.<\/p>\n

Fed at a Crossroads<\/strong><\/p>\n

Minutes of the July FOMC meeting showed that most policymakers preferred holding the federal funds rate steady at 4.25\u20134.50%, citing persistent inflation risks. However, two dissenting voices\u2014Vice Chair for Supervision Michelle Bowman and Governor Christopher Waller\u2014voted for a 25 bps cut, marking the first multiple-governor dissent since 1993.<\/p>\n

The majority argued that tariffs under President Donald Trump\u2019s policies could worsen inflation. The Fed continues to walk a tightrope on its dual mandate of price stability and maximum employment.<\/p>\n

Mixed Economic Signals<\/strong><\/p>\n

Inflation data remains elevated but stable. July CPI came in at 2.7%, slightly below expectations, while the Fed\u2019s preferred gauge, PCE inflation, rose 2.6% in June after 2.4% in May. July PCE data will be released on August 29.<\/p>\n

The labor market, however, is showing signs of stress. US nonfarm payrolls rose by just 73,000 in July\u2014the weakest in nearly five years\u2014following downward revisions to May and June that cut 258,000 jobs. Analysts believe these figures strengthen the case for easing policy.<\/p>\n

Experts Divided<\/strong><\/p>\n

Chris Zaccarelli, CIO of Northlight Asset Management, noted that the Fed delayed cuts in July due to inflation worries, but said the real test lies in \u201chow they weigh the risks at the next meeting.” He expects Powell to stress data dependence and keep his guidance guarded.<\/p>\n

Dr. Joseph Thomas of Emkay Wealth Management pointed out that while headline inflation is steady at 2.7%, core inflation at 3.1% remains a concern, and tariff impacts could worsen price pressures. He suggested the Fed may not cut unless growth slows sharply.<\/p>\n

Kotak Mahindra AMC\u2019s CIO\u2013Debt, Deepak Agrawal, said markets are pricing in an 80% probability of a 25 bps cut in September. He added that a larger 50 bps move is unlikely, as the Fed will aim to maintain credibility and avoid unnecessary volatility.<\/p>\n

Markets Eye September FOMC<\/strong><\/p>\n

Investors see Powell\u2019s Jackson Hole remarks as pivotal. A focus on labor market weakness could reinforce expectations of a September cut, while a hawkish stance would underscore inflation as the priority. The Fed\u2019s next meeting on September 16\u201317 will be decisive, with incoming jobs and inflation data likely to guide the outcome.<\/p>\n

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Aparna Deb<\/a><\/p>\n

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More<\/span><\/p>\n<\/div>\n<\/div>\n

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More<\/span><\/p>\n<\/div>\n<\/div>\n

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News<\/a> business<\/a> \u00bb economy<\/a> Jerome Powell\u2019s Jackson Hole Speech In Focus: Will It Set Tone For US Fed\u2019s Next Move?<\/span><\/div>\n
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Last Updated:August 21, 2025, 12:27 IST Global markets are closely watching Federal Reserve Chair Jerome Powell\u2019s keynote at the Jackson Hole symposium on Friday; Key points for investors US Federal Reserve Chair Jerome Powell. (Photo Credit: AP) Jerome Powell\u2019s Jackson Hole Speech: Global markets are closely watching Federal Reserve Chair Jerome Powell\u2019s keynote at the…<\/p>\n","protected":false},"author":1,"featured_media":7213,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[],"class_list":["post-7488","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/7488","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/comments?post=7488"}],"version-history":[{"count":0,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/7488\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media\/7213"}],"wp:attachment":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media?parent=7488"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/categories?post=7488"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/tags?post=7488"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}