“It’s Time for Politics to Adjust” by Investing.com

• Powell: My confidence has increased that inflation is on track for 2%
• Powell: We are not looking for or welcoming a further cooling of the labor market
• Powell: “The time has come for policy to adjust”
• “The timing and pace of rate cuts will depend on the data coming in,” says Powell

Fed Chairman Jerome Powell is set to deliver a highly anticipated speech at the annual Jackson Hole Symposium in Wyoming’s Grand Teton National Park on Friday.

Market participants are eagerly awaiting his remarks, which are expected to provide insight into the future direction of the Federal Reserve’s monetary policy amid ongoing economic uncertainties.

The speech is likely to influence the market’s perception of future monetary policy and the economy.

With weakening US economic data prompting the Federal Reserve to cut interest rates, there is a growing belief that the Fed will do so at its next meeting in September.

In a note to clients this week, analysts at Barclays told investors they believe “the Fed’s Jackson Hole talks will be key to adjusting policy expectations.”

“Powell’s speech today in Jackson Hole may not change the markets scenario much. However, plenty of “good” rate cut news is arguably already being fed into rates and equity markets, with four Fed cuts priced into OIS swaps before the end of the year. “, they added.

Meanwhile, Goldman Sachs expects Powell’s speech and his subsequent interviews to highlight reliance on data and a cautious approach to rate cuts.

The investment bank expects Powell to reaffirm the Fed’s readiness to respond quickly to deteriorating economic conditions, but refrain from aggressive easing without additional data.

“While the academic side of the symposium has the potential to impact the long-term direction of policy, the side interviews should shed more light on immediate policy questions, analysts at the influential investment bank said.