Jackson Hole Central Bank Annual Meeting on Friday, Powell is set to take the stage again.
The market eagerly hopes he will hint at interest rate cuts, but this Federal Reserve chair is likely to play it safe. Inflation is like a thorn, stuck in the economy's throat, unable to be spat out or swallowed down.
To be honest, the current Federal Reserve faces soft employment data and pressure from politicians on one side, and the specter of inflation rearing its head on the other.
Cut interest rates? Afraid of adding fuel to the fire.
Not cut? Afraid the economy can’t bear it.
Powell's caution is not without reason, but what the market hates most is uncertainty.
The Federal Reserve doesn't have many cards left to play. But it’s tough for those hoping for a policy shift, as September is just around the corner, yet the signals remain vague. This tug-of-war between inflation and growth is likely to continue.
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