Jerome Powell is preparing to speak at the Jackson Hole Economic Symposium for the last time since being appointed by then-President Donald Trump in 2017.
Powell will give a speech at an event tomorrow at 17:00 (UTC+3) at the Jackson Lake Lodge in Wyoming, which global central bankers will closely follow.
Powell's seven speeches at Jackson Hole so far have covered a wide range, from monetary policy history to employment targets, inflation-fighting strategies to pandemic-era support promises. Each speech highlighted clues about the FED's next interest rate move.
Here are what he said in previous years and what followed:
2018 – Powell emphasized the importance of gradual interest rate increases. Four interest rate hikes were made during the year.
2019 – Noting the slowdown in global growth and trade uncertainties, Powell stated they would take action if necessary. The FED cut interest rates three times during the year.
2020 – In an online speech due to the pandemic, Powell announced a new strategy that included maximum employment and an average 2% inflation target.
2021 – Arguing that inflation would be temporary, Powell said there was no need to rush into interest rate increases. However, this approach later faced criticism.
2022 – Powell clearly stated that high interest rates and economic slowdown would bring “pain” in the fight against inflation. The FED continued aggressive rate hikes.
2023 – Powell claimed there was progress in inflation, expressing that interest rate increases could continue if necessary. The policy rate was kept in the range of 5.25%-5.50%.
2024 – With the decrease in inflation risks, Powell announced that the time for interest rate cuts had come, and the FED implemented a 50 basis point cut in September 2024.
Powell's speech this year is expected to contain critical messages regarding whether the interest rate cut process will continue.
Stay tuned for current developments.
