From Investing.com: 2024-08-26 04:05:20

Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Economic Symposium signaled a dovish shift in the central bank’s stance on monetary policy, indicating a readiness to lower interest rates. Market expectations align with multiple rate cuts, with the federal funds rate futures market predicting a total of 100 basis points in cuts by year-end. Powell emphasized the need to support the labor market as inflation trends towards the Fed’s 2% target. Some strategists believe Powell’s comments may have been overly dovish, cautioning against easing policy too quickly if inflationary pressures resurface. Powell’s emphasis on supporting the labor market could necessitate another pivot if economic conditions change.



Read more at Investing.com: Powell’s latest pivot won’t be his last By Investing.com