The President of the Federal Reserve Powell to speak at Jackson Hall amid speculation for lowering prices

Federal Reserve Chairman Jerome Powell It will present a major title at the annual Jackson Hole event on Friday in a decisive time as the economy expects to reduce the next interest rate of the Central Bank and its leader at the FED.

It is expected that Powell’s speech in the spotlight in Jackson Hall will be his last chair in the Federal Reserve, with the end of his term in May 2026 and the president Donald Trump He undertakes not to be resetting for this role. Trump was appointed Powell in this role in 2017. His term as the Federal Reserve Right extends to 2028, although Powell did not say whether he would continue to work after his presidency.

The main title of the chair also comes at the time of uncertainty for the American economy. While the labor market remained near the full employment, the job report in July was weaker than expected and the review of the recruitment reviews in May and June, and showed the creation of job opportunities on the verge of stalling speed. Inflation has significantly decreased from its highest level in 41 years in 2022, but it was heading up in recent months with more customs graphics and causing consumer prices to rise.

Powell may take advantage of his annual speech at Kansas City Fed to refer to the market how the latest data is seen and whether price discounts would resume in September, after using a similar tactic last year.

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In his speech in August 2024, Powell said Federal Reserve You will start lower interest rates at its next meeting in September. He explained that “the time has come to control policy,” adding that “the direction of travel is clear, and that the timing and speed of discounts depends on the data received, advanced expectations, and the balance of risk.”

Ultimately, the Federal Reserve reduced interest rates by 50 points in September 2024, then dealt with 25-Basis discounts in November and December.

However, policy makers left the standard federal fund Definitions on inflation The durability of the labor market.

The markets will now bet on the price reduction in September after the disappointing jobs report

The latest monetary policy meeting was distinguished in the Federal Reserve Double opposition Federal Conservatives Michelle Buman, Christopher Waller, who voted in favor of reducing its 25 bass and arguing that any enlarged customs tariff would be a single -time shift in price levels, while proactively supporting the labor market.

This was the first dual opposition in favor of price cuts since 1993, although the FOOC Open Market’s vote (FOMC) was 9-2 in favor of leaving prices unchanged.

With the change in the best loom on the horizon next year, politics in the field of federal reserve focuses on economic conditions at the present time.

Modern data showed a A modest increase in inflation With the start of the customs tariff in the influence of consumer prices, the PIPs Expenditure Index (PCE) increased from 2025 in April to 2.3 % in May and 2.6 % in June. These numbers are much higher than that of the Federal Reserve of 2 %.

In the labor market, Job report in July Only 73,000 jobs have been added to this month – much less than 110,000 Economists of LSEG, while employment was revised in May and June to 258,000. This left an average of 3 months of job gains with more than 35,000 jobs, indicating the slow labor market, while the unemployment rate increased to 4.3 %.

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The inflation report is scheduled to be released in July on August 29, that is, a week after the Powell speech, while the consumer price index is scheduled to be released in Augi on September 11. The August Jobs report is also scheduled to be released on September 5.