Analysis: Mixed Feelings Economic Data May Force Powell to Strike a Balance in Tonight's Speech
BlockBeats News, August 22: Federal Reserve Chairman Powell is set to speak at the Jackson Hole Annual Economic Symposium at 10 p.m. Beijing time on Friday. Currently, the Fed is facing unprecedented political pressure from the U.S., but mixed economic data may force Powell to take a middle-of-the-road stance, leaving key issues unresolved.
On interest rate policy, some analysts expect a middle-ground approach. Powell may open the door to a rate cut in September to acknowledge the need for further easing due to weak job growth, but will not make more commitments until policymakers are more confident that the rising inflation is temporary. This stance may not satisfy Trump—who advocates for rates to be cut significantly to around 1%—or investors betting on multiple rate cuts this year, although market confidence in a September rate cut has already wavered. (Golden Finance)
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