Powell to Address Rate Cuts at Jackson Hole Symposium

Federal Reserve Chairman Jerome Powell is set to address the Jackson Hole Economic Policy Symposium this week, where he may signal the Fed's approach to potential interest rate cuts. Analysts predict he will discuss the Fed's assessment of inflation progress and suggest the possibility of a 25 to 50 basis point cut at the upcoming September meeting. Recent economic data has led some economists to believe that a 50 basis point cut could be on the table, but traders are currently pricing in a higher likelihood for a smaller reduction. The meeting is crucial as it will provide insights into the Fed's future monetary policy direction amidst easing inflation rates and shifting market expectations. Global financial markets are closely watching Powell's speech for indicators of the Fed's next moves, especially as other major central banks begin to lower rates. Overall, Powell is expected to emphasize flexibility in policy adjustments while maintaining a cautious stance on inflation.