The Federal Reserve Chair Jerome Powell Annual Jackson Hole, on Friday at the Vyoming Economic Forum, is giving a widely anticipated speech about the economy.
Powell’s comments come when he is facing several pressures, including President Trump’s resignation and repeated calls for conflicting economic signs, which can tighten it for the fed to fulfill his double mandate to promote complete employment keeping in mind the inflation.
A central question for Fed – Also from the White House to the borrowers and investors -Is it interested to reduce interest rates in its next meeting, has been scheduled for 16-17 September, First time after December 2024,
When monetary policy makers opted to hold rates Stable last monthPowell highlighted the growing economic uncertainty from Mr. Trump’s tariff, while he believed that the economy remained on solid ground.
Nevertheless, later economic data has pointed to recession. Job growth – a major solution to the strength of the economy – Quite underace Economists forecast, while a large below amendment in May and June payroll benefits suggested that the labor market had already thought.
At the same time, Fed is closely looking at the country’s inflation rate, which is above 2% annual target of the central bank and which is higher in recent months. Under the Fede mandate, the central bank has been tasked to keep both inflation and unemployment low.
“Fed is being placed in a difficult place, with the pressure to cut interest rates and a decrease in the labor market as an increase in inflation – with both of those Matrix moves in the opposite direction from the double mandate of the Fed,” Etoro US investment analyst Brett Kenwell said in an email before Powell’s speech.
According to CME Fedwatch, the Fed’s September meeting is about 72%likely to cut the rate, which base its calculation at the prices of 30-day Fed Fund Fund Futures.
