Federal Reserve Chair Jerome Powell spoke this morning at the Jackson Hole Economic Policy Symposium in Wyoming. His keynote was delivered at 10:00 a.m. EDT (8:00 a.m. MDT) under the title “Monetary Policy and the Fed’s Framework Review.”
Key Themes & Highlights
Tightrope Walk Between Inflation & Employment
Powell framed the economic outlook as a “challenging situation”, with upside risks to inflation—notably from tariffs—and downside risks to employment, given a recent jobs slowdown.
Tariffs Are Taking Their Toll
He noted that the impact of higher tariffs is now clearly visible in consumer prices, particularly in goods—raising risks that must be closely monitored.
No Preset Path Forward
While Powell did not promise specific policy moves, he made it clear that the Fed's actions will be “data-dependent.” The shifting balance of risks could justify adjusting policy—but only if warranted by the economic outlook.
Markets Expect a September Rate Cut
Investors interpreted his remarks as leaning toward an interest rate cut at the September 17 FOMC meeting—with several analysts noting this was the clearest signal yet. The S&P 500, Dow, and Nasdaq all rallied.
Policy Framework Update
Powell introduced a revised consensus statement—the outcome of the Fed's second five-year public review—which clarifies how the Federal Reserve approaches its dual mandate in a changing economic environment.
In Summary
Macro Outlook Inflation pressures (tariffs) rising; jobs slowing
Policy Signal Open to cuts; no firm commitment—“data-dependent”
Market Response Stocks rallied; investors now expect a September rate cut
Fed Framework Framework refreshed for evolving economic conditions
