Powell Delivers Final Fed Speech at Jackson Hole Symposium

Federal Reserve Chair Jerome Powell is set to deliver his final Jackson Hole speech, a pivotal event closely watched by investors and policymakers for signals on the Fed's monetary policy direction. Markets have priced in an expectation for interest rate cuts to begin in September, but Powell's remarks could challenge these assumptions, potentially triggering market volatility especially if he refrains from committing to rate cuts amid concerns about inflation pressures linked to President Donald Trump's tariffs. Powell's speeches at Jackson Hole have historically indicated forthcoming Fed actions, from rate hikes in 2018 to cuts in 2019, reflecting economic challenges including trade tensions and evolving inflation dynamics. This year's speech comes amid a backdrop of persistent inflation above the Fed's 2% target and emerging signs of labor market weakness, complicating the Fed's dual mandate of price stability and maximizing employment. Powell is expected to reaffirm the inflation target while cautiously signaling the possibility of modest rate reductions, balancing the need to control inflation with labor market realities and political pressures. The speech is viewed as a make-or-break moment for the summer stock market rally and broader financial market stability.