Anxious market, now waits for ‘Jackson Hole’ summit… Powell to speak on the 23rd.

[‘Following the confirmation of the landing signal of the US economy in the consumer index, in addition to the inflation index, now the market’s attention turns to the words of Jerome Powell, the Chairman of the Federal Reserve.’, ‘At the Jackson Hole Symposium, also known as the “August Teutonic Prophecy,” on the 23rd (local time), Powell’s remarks will once again possibly stir the market.’, ‘Currently, Wall Street expects Powell to lay the groundwork for a rate cut in September.’, ”, ”, ‘

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[Source of image=Reuters News]‘, ”, ”, ‘”According to the Fed, the highlight of the Jackson Hole Symposium, to be held by the Kansas City Federal Reserve Bank in Wyoming from the 22nd to the 24th, is undoubtedly Chairman Powell’s keynote speech. Powell’s speech on the “Economic Outlook” will take place at 10 a.m. Eastern time on the 23rd, which is 11 p.m. Korea time.”‘, ”, ”, ‘”The Jackson Hole Symposium, held annually around this time, is where central bank governors, finance ministers, economists, and other officials gather to discuss global economic issues. The statements made by influential figures that move the world economy at this event have often shaken the market, leading to terms like the ‘Teutonic Prophecy’ and ‘Jackson Hole Consensus’. The announcement made by former Fed Chairman Ben Bernanke about quantitative easing during the financial crisis took place at Jackson Hole. In 2022, Powell’s strong statements on inflation led to a major sell-off in major country stocks, also known as the “Powell Shock.”‘, ”, ”, ‘Especially, Powell’s speech this year is likely to be his last official speech before the Federal Open Market Committee (FOMC) meeting in September. This event could provide hints not only on the extent of the expected rate cut in September but also on the pace of future cuts. According to the CME FedWatch, the federal funds (FF) rate futures market currently reflects a 75% likelihood of a 0.25% rate cut by the Fed on that day. After concerns of a recession surfaced following the employment shock earlier this month, the projection for a big cut (0.5% rate reduction) dropped to 25%.’, ”, ”, ‘This follows the recent slowdown in inflation indicators such as the Consumer Price Index (CPI), Producer Price Index (PPI), and expected inflation, as well as the retail sales data released on this day indicating the landing signal of the US economy. Retail sales in July, which represent two-thirds of the US economy, unexpectedly increased by 1% from the previous month. Retail giant Walmart’s performance also exceeded expectations.’, ”, ”, ‘In this context, Powell’s upcoming speech at Jackson Hole next week is expected to essentially diminish the fears of an impending recession that spread earlier this month. However, as Federal officials have emphasized careful decision-making in their recent statements, the extent of the rate cut in September is expected to become clearer after the release of the August jobs report on the 6th of the same month. Powell has recently stated that the Fed’s focus will be more on employment in pursuit of its dual mandate of maximum employment and price stability.’, ”, ”, ‘With the easing of recession fears following the better-than-expected consumer index, the three main indexes of the New York Stock Exchange all closed with gains of 1-2%. Walmart, which posted strong results, saw its stock price surge by over 6%.’]