empty
23.08.2023 11:53 AM
What to expect from Powell's speech in Jackson Hole?

This image is no longer relevant

All market participants are sitting on the sidelines of the speech by Federal Reserve's Chair Jerome Powell at the annual symposium held by the central bank of Jackson Hole, Wyoming. He is due to speak on Friday. It goes without saying that financial markets will be riveted to the Fed leader's keynote speech delivered every year. Investors will be looking for clues to further policy moves of the Federal Reserve. Meanwhile, investors are trying to puzzle out whether the US central bank will follow its ongoing hawkish monetary policy and raise the funds rate by another 25 basis points one more time this year or abandon its aggressive monetary tightening.

However, Powell's speech is unlikely to be as powerful this year as it was last year. Jerome Powell's 10-minute speech at Jackson Hole last year rocked financial markets. In his speech, the chairman focused on getting the economy back to price stability, saying it would take some time and also require some pain for households and businesses. He called these measures a dear price to pay to bring inflation down.

Inflationary pressure peaked at 9.1% on year in June 2022 and since then, sank to 3.2% in July of this year. In this context, Powell will speak more calmly. At the same time, the Fed's goal of pushing inflation to 2% remained in place.

Many analysts, including Philadelphia-based Fixed Income Portfolio Manager Jack McIntyre at Brandywine Global Investments Management, say that the Federal Reserve is unlikely to change the game and come up with opposite statements this year. Most likely, Powell's speech will be: "We have done a lot in our monetary policy, but there is still much to be done, and our mission is not yet completed."

The mainstream opinion of most analysts is that the Fed chairman's speech at Jackson Hole this year will be moderately hawkish, and this will be the difference from last year. Powell's speech last year pushed precious metals prices to historic highs. The precious market will hardly respond in this manner this year as well.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

XAU/USD. Analysis and Forecast

Today, gold maintains a positive tone; however, bulls are acting cautiously, preferring to refrain from aggressive buying ahead of the release of the important U.S. Non-Farm Payrolls (NFP) report

Irina Yanina 15:30 2025-06-06 UTC+2

WTI. West Texas Intermediate. Traders Await NFP

Prices for West Texas Intermediate (WTI) crude oil remain in the middle of a three-day range. Prices are supported by hopes for the resumption of trade negotiations between the U.S

Irina Yanina 11:23 2025-06-06 UTC+2

ECB Meeting Results and Christine Lagarde's Press Conference

The euro responded with a significant rise following the ECB's decision to cut interest rates. But why did this happen? Let's break it down. The key reason behind the euro's

Jakub Novak 10:54 2025-06-06 UTC+2

What to Pay Attention to on June 6th? Fundamental Event Analysis for Beginners

Analysis of Macroeconomic Reports: A fairly large number of macroeconomic publications are scheduled for Friday, but most of them will not interest traders. For example, the report on industrial production

Paolo Greco 10:11 2025-06-06 UTC+2

Overview for the GBP/USD pair on June 6, 2025

The GBP/USD currency pair continued its upward movement on Thursday, trading overall calmly and without any rush. There was no news for either the British pound or the U.S. dollar

Paolo Greco 05:47 2025-06-06 UTC+2

Overview for EUR/USD on June 6, 2025

The EUR/USD currency pair continued to trade very calmly on Thursday, even when the results of the ECB meeting became known. It should be noted that there was no intrigue

Paolo Greco 05:21 2025-06-06 UTC+2

The EU Economy Will Not Suffer, According to Lagarde

Today, a meeting of the European regulator took place, where the obvious and expected decision was made to lower all three interest rates by another 25 basis points. The decision

Chin Zhao 02:56 2025-06-06 UTC+2

USD/JPY. Analysis and Forecast

During the European session on Thursday, the Japanese yen maintained stability, allowing the USD/JPY pair to hold above the key 143.00 level amid a moderate rise in the U.S. dollar

Irina Yanina 12:04 2025-06-05 UTC+2

AUD/JPY. Analysis and Forecast

Today the AUD/JPY pair is attracting new buyers. Recent Chinese data, including the private Caixin survey, showed a moderate acceleration in growth in China's services sector

Irina Yanina 11:36 2025-06-05 UTC+2

USD/CAD. Analysis and Forecast

The USD/CAD pair continues to decline. Fundamental factors support bearish sentiment, indicating that the path of least resistance for spot prices remains downward. Reports of a trade agreement between

Irina Yanina 11:33 2025-06-05 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.