Jackson Hole Conference Preview: Investment Banks Are in Turmoil Over Rate Cut Expectations, How Will Powell Set the Tone?

At 10 PM on August 22, Eastern Time, Federal Reserve Chairman Powell's speech at the Jackson Hole Conference has become the 'eye of the storm' in global financial markets. Major investment banks have sharply divided views on the rate cut signals released at this conference.

Some are bullish on the possibility of a rate cut: State Street Investments bluntly states that Powell may pave the way for a rate cut in September; UBS also believes he might hint at a rate cut in September; Russell Investments notes that while there is a probability of a rate cut, the magnitude is likely to be 25 basis points; ING has even sensed a shift towards a more dovish stance from Federal Reserve officials due to their concerns about the job market.

However, some institutions remain cautious: Mitsubishi UFJ predicts that Powell may not clearly indicate the timing of a rate cut and is more inclined to continue assessing economic data before the September meeting; Bank of America expresses skepticism about a rate cut this year, believing that the current low employment growth may have already left Powell feeling 'satisfied'.

A battle of bulls and bears over rate cuts has already begun, and a single word from Powell might instantly change the market direction. $ETH $BTC