Fed Chair Jerome Powell May 'Regret' Recent Speech

At last week's Jackson Hole event, Federal Reserve Chairman Jerome Powell emphasized the importance of recent labor market data, saying the central bank was about to change monetary policy as it saw signs of a weaker labor market.

However, economist Adam Posen, president of the Peterson Institute for International Economics (PIIE), said Powell's remarks were not broad enough and did not address other economic factors. This could confuse the overall economic "picture."

Posen pointed out that Powell did not talk about how the economy got to where it is or how interest rates might change the course of the economy. The economist said that the speech's focus on such a short time frame was influenced by political factors, with the upcoming presidential election.

Currently, according to the CME FedWatch tool, investors are predicting that the Fed will cut interest rates by 25 basis points at its policy meeting on September 17-18, and the possibility of a 50 basis point cut is lower.