โ๐ด Summary of Powell's Speech โ Jackson Hole 2025 ๐บ๐ธ
๐ ๐
Jerome Powell "ignites" ๐ฅ the markets with his statements at the Jackson Hole seminar regarding interest rate cuts in America
โ๐ข The S&P 500 and Dow Jones indices on Wall Street jumped by more than 1.5% at the end of the speech
โ๐ด The US dollar index declined by about
โโ๐ข Futures contracts jumped by about 1% to $3371 per ounce ๐บ๐ธ
๐ฅ๐ฅPowell: Conditions may warrant an interest rate cut, but uncertainty complicates the task
๐ 0.75%
Key points:
โข The US economy remains resilient and the labor market is strong, but risks are increasing.
โข Tariffs could push inflation back up, which the Fed aims to avoid.
โข The current interest rate is about 1% lower than last year.
โข The low unemployment rate allows the Fed to proceed cautiously in adjusting policy.
โข Monetary policy remains tight and may need adjustment if the risk balance changes.
โข All decisions will depend solely on economic data.
โข The direct impact of tariffs may be short-term, but their effect through supply chains may take longer
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