BlockBeats news, on August 19, Fed Chairman Powell will speak at the Kansas City Fed's annual central bank conference in Jackson Hole, Wyoming, on August 22 at 10 AM Eastern Time (10 PM Beijing Time), addressing the economic outlook and the Fed's policy framework assessment. Major investment banks have the following expectations for Powell's speech:
State Street Global Advisors: Expect Powell to pave the way for a rate cut starting in September and continuing through the end of the year.
Swiss Bank: Given last week's data, Powell may be willing to hint at a Fed inclination to cut rates in September during the meeting.
Russell Investments: The Jackson Hole meeting may cool expectations for Fed rate cuts; a September rate cut is 'possible' rather than 'certain', and the cut will be 25 basis points instead of 50 basis points.
Dutch International: Recently, three Fed officials (Daly, Cook, and Kashkari) have expressed concerns about the worsening job market, which seems to be a precursor to a more dovish official stance at the Jackson Hole central bank annual meeting.
Mitsubishi UFJ: The risk of the Jackson Hole meeting is that Powell may not provide clear signals on the timing of the next rate cut, allowing the Fed to buy more time to continue assessing upcoming data before the September FOMC meeting. This could help alleviate downward pressure on the dollar in the short term.
Bank of America: We are skeptical about the Fed cutting rates this year. Powell stated in July that as long as the unemployment rate remains within a narrow range, he would be satisfied with low job growth. It now seems that this scenario is becoming a reality, and Powell's speech at Jackson Hole will give him an opportunity to 'walk the talk'. (Jin Shi)