US Federal Reserve (Fed) Chairman Jerome Powell is scheduled to deliver a speech titled "Economic Outlook and Framework Review" at the annual Jackson Hole Economic Symposium on Friday at 14:00 GMT.
Market participants will be closely watching Powell's speech for new clues on the direction of monetary policy, particularly regarding the timing of the Fed's first interest rate cut this year and the potential scope and timing of subsequent rate cuts.
Powell's remarks are expected to roil markets, triggering intense volatility around the US dollar (USD), as the world's most influential central bank plans to take policy easing steps as early as September.
At its July policy meeting, the Fed maintained the federal funds rate in the range of 4.25%-4.50%, but two policymakers dissented. Fed Governor Christopher Waller and Fed Governor Michelle Bowman voted in favor of a 25 basis point (bps) rate cut.
In a statement released a few days after the July meeting, Governor Waller explained that he disagreed because he viewed tariffs as a one-time price event that policymakers should "consider" as long as inflation expectations remained subdued. Governor Bowman argued that slowing growth and a less dynamic labor market made it necessary to gradually shift the already tight policy toward neutral.
However, US employment data for July rekindled concerns about worsening labor market conditions and strengthened expectations of a September interest rate cut.
US nonfarm payrolls (NFP) rose by 73,000 in July, while nonfarm payrolls for May and June were revised down to 125,000 and 133,000, respectively. On the other hand, the latest Consumer Price Index (CPI) and Producer Price Index (PPI) data from the US indicate persistently high inflation, raising doubts about the number of interest rate cuts the Fed might choose in 2025.
Against this backdrop, the US Dollar (USD) faces two-way risks ahead of the highly anticipated Jackson Hole summit. (alg)
Source: FXstreet
Stephen Miran, a Federal Reserve governor whose term ends at the end of January, said Thursday that he is looking for 150 basis points of interest-rate cuts this year to boost the U.S. labor market. ...
Federal Reserve Vice Chair for Supervision Michelle Bowman outlined significant changes to bank supervision and regulation during a speech at the California Bankers Association Bank Presidents Seminar...
Further changes to the Federal Reserve's short-term interest rate will need to be "finely tuned" to incoming data given the risks to both the U.S. central bank's employment and inflation goals, Richmo...
Richmond Federal Reserve Bank President Tom Barkin said the monetary policy outlook remains in a fragile balance given the conflicting pressures of rising unemployment and persistently high inflation....
The US Federal Reserve agreed to cut interest rates at its December meeting only after a highly nuanced debate about the current risks facing the US economy, according to minutes from the two-day meet...
Gold price rises on Friday, poised to end with weekly gains of nearly 4% as an employment report in the US was mixed, with the economy adding fewer jobs than projected. Still, the Unemployment Rate ticked lower, yet investors are still betting the...
Harga emas kembali menguat pada perdagangan terbaru setelah sempat tertekan, didorong oleh melemahnya dolar AS dan turunnya imbal hasil obligasi pemerintah AS. Investor kembali memburu emas sebagai aset lindung nilai di tengah ketidakpastian arah...
Silver is currently hovering around $77,430, likely awaiting triggers from the US dollar and yields. If the dollar strengthens, silver is usually resilient; if the dollar weakens, silver rises more easily.Fundamentals are still supported by safe...