- Federal Reserve Chairman Jerome Powell is scheduled to deliver a speech on the economic outlook of the United States at the upcoming Economic Policy Forum in Jackson Hole, taking place next Friday. Over the past few years, Powell has been the one to give the opening address for this three-day forum, which is set to occur from August 24 to 26 this year.
- Investors are particularly eager for Powell's speech as it is expected to provide insights into the potential trajectory of interest rates. The central bank had raised interest rates last month, setting them at a range of 5.25% to 5.5%, marking the highest point in the past 22 years. This annual event, held in Jackson Hole, Wyoming, USA, is organized by the Kansas City Federal Reserve and brings together numerous central bankers, policymakers, academics, and economists from around the globe.
Why it matters
During their most recent meeting, Federal Reserve officials conveyed apprehension regarding the rate of inflation, revealing in the minutes of the July session that additional interest rate increases might become necessary down the line if circumstances remain unchanged. Conversely, two officials expressed a preference for maintaining current interest rates. Federal Reserve data demonstrated a robust 1% monthly expansion in industrial production for July, surpassing predictions of a 0.3% growth rate.
