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

The Market Enters Turbulent Waters

The market is confident that tariffs won't materialize or that companies can pass them on to customers. The S&P 500's eight-day rally—its longest since August—strongly hints at this. So does

Marek Petkovich 09:24 2025-05-02 UTC+2

What to Pay Attention to on May 2? A Breakdown of Fundamental Events for Beginners

Only a few macroeconomic events are scheduled for Friday, but some are quite significant. Naturally, the focus is on the U.S. NonFarm Payrolls and unemployment rate, yet it's also important

Paolo Greco 09:14 2025-05-02 UTC+2

GBP/USD Overview – May 2: The U.S. Dollar Didn't Rise for Long

On Thursday, the GBP/USD currency pair continued to decline. The dollar had strengthened for three consecutive days—despite having no objective reason. U.S. macroeconomic data has been consistently weak; there were

Paolo Greco 03:50 2025-05-02 UTC+2

EUR/USD Overview – May 2: The Dollar Faces a New Collapse – And It's Far from the Last

On Thursday, the EUR/USD currency pair once again traded relatively calmly, but the U.S. dollar failed to show any meaningful growth this time. A little bit of good news goes

Paolo Greco 03:47 2025-05-02 UTC+2

USD/JPY: A Rough Patch for the Yen

At its latest meeting, the Bank of Japan kept all key policy settings unchanged, effectively implementing the most expected baseline scenario—despite earlier conflicting statements from central bank officials

Irina Manzenko 01:19 2025-05-02 UTC+2

The Dollar Demands the Impossible

The market has finally found relief after America's Liberation Day. Stock indices are ready to recover the ground lost following the White House's implementation of sweeping tariffs amid expectations

Marek Petkovich 01:02 2025-05-02 UTC+2

Market pins blame on former president

In April, the US stock market took investors on its wildest roller coaster ride since the pandemic. The White House's "American Liberation Day" tariffs seemed to undermine the S&P 500's

Marek Petkovich 12:01 2025-05-01 UTC+2

Why Gold Is Falling for the Third Consecutive Day

Gold is declining for the third straight day amid signs of potential progress in trade negotiations between the U.S. and several other countries, which is dampening demand for safe-haven assets—even

Jakub Novak 11:40 2025-05-01 UTC+2

The Japanese Yen Has Declined Sharply — Here's Why

The yen fell sharply against the dollar and bond yields declined after the Bank of Japan (BoJ) left interest rates unchanged and pushed back the expected timeline for hitting

Jakub Novak 11:31 2025-05-01 UTC+2

The Eurozone Continues to Deliver Unexpected Results

According to the latest data, the eurozone economy grew more than expected at the beginning of the year, although it has yet to fully feel the impact of the U.S

Jakub Novak 09:13 2025-05-01 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.