Analysts from HSBC and Bank of America expect Powell to avoid signaling imminent easing in his Jackson Hole speech amid stagflation concerns, despite strong market expectations for a September rate cut.
Fed Chair Jerome Powell will speak at the Jackson Hole economic symposium on August 22 at 22:00 local time, amid widespread market expectations of a 25 basis point rate cut in September. Analysts from HSBC and Bank of America predict Powell may refrain from indicating monetary easing during the speech due to concerns over stagflation risks and rising inflation. This comes against a backdrop of tariffs affecting inflation and a slowing job market, alongside political pressure for rate cuts from President Trump, who is reportedly considering replacing Powell before his term ends in May next year.