Powell’s speech in Jackson Hole tonight…preparing for a rate cut in September?

“Jerome Powell, Chairman of the Federal Reserve in the United States, is scheduled to explain the future direction of monetary policy through his keynote speech at Jackson Hole from our perspective tonight.
Given the high possibility that the Fed will cut interest rates starting next month, the global financial markets are eagerly awaiting Chairman Powell’s remarks for clues on the tone and content.
In the market, there is an anticipation that once Chairman Powell formalizes a shift in monetary policy, known as a ‘pivot,’ it will signal a high probability of a rate cut in September.
However, it is likely that he will not make clear mention of the specific magnitude of the rate cut and the pace going forward.
Based on the released minutes from the Federal Open Market Committee meeting last month, many Fed officials suggested that if the data come in as expected, easing monetary policy from September would be appropriate.
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