## Powell’s Jackson Hole Speech: Navigating Politics and Policy
This article previews Federal Reserve Chair Jerome Powell’s upcoming keynote address at the annual Jackson Hole economic symposium. The speech comes at a critical juncture for the Fed, facing both political pressure and complex economic challenges. Here’s a breakdown of what to expect:
- Political Pressure: Powell is likely to address the ongoing political attacks from the Trump administration, which has criticized the Fed’s policies and even targeted individual officials. He may subtly defend the Fed’s independence.
- Policy Outlook: The speech will include an “Economic Outlook and Framework Review,” providing Powell’s views on current economic conditions and the Fed’s long-term policy goals. Markets are anticipating signals about a potential September rate cut.
- September Rate Cut Expectations: While not expected to explicitly commit to a rate cut, Powell is likely to signal support for one, according to analysts. The labor market and inflation pass-through from tariffs will be key areas of focus.
- Labor Market and Inflation: The article notes mixed views on the labor market and inflation among Fed officials. Powell’s assessment of these factors will be crucial for market sentiment.
- Framework Review: The Fed is expected to retool its inflation targeting framework, potentially returning to a more preemptive approach to inflation control.
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