Markets See Four Fed Cuts Ahead After Powell’s Dovish Jackson Hole SpeechView all comments (0)0The Fed’s unemployment mandate is now overshadowing any inflation fears. Fed Chairman Jerome Powell, on Friday at the Kansas City Fed Conference in Jackson Hole, gave a dovish speech and signaled “a shifting balance of risks may warrant adjusting our policy stance.” Additionally, Powell said “downside risks to employment are rising.”The thing that got everybody all excited was when the Fed Chairman said, “Our policy rate is now 100 basis points closer to neutral than it was a year ago, and the stability of the unemployment rate and other labor market measures allows us to proceed carefully as we consider changes to our policy stance.”This means that not only are they going to cut, but they’re also probably going to cut four times because they are 100 basis points above where they should be.Powell also recognized that “decline in growth has largely reflected a slowdown in consumer spending.” Treasury yields declined in the wake of Powell’s comments, and the stock market staged a relief rally.Meanwhile, housing inflation is cooling off. The National Association of Home Builders announced on Thursday that existing home sales rose 2% in July to an annual pace of 4.01 million. This was a big surprise, since economists were expecting a 0.5% decline. In the past 12 months, median home prices have only risen 0.2% to $422,400.The Commerce Department announced on Tuesday that housing starts surged 5.2% in July to a 1.428 million pace compared to a revised 1.358 million annual pace in June. In the past 12 months, new housing starts have risen 12.9%. Building permits actually declined to a 1.354 million annual pace in July, down from a revised 1.393 million annual pace in June. Overall, this was good news for the housing industry, and it appears that many home builders may be anticipating lower mortgage rates in the upcoming months.Markets See Four Fed Cuts Ahead After Powell’s Dovish Jackson Hole SpeechView all comments (0)0Latest commentsInstall Our AppScan QR code to install appRisk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.© 2007-2025 - Fusion Media Limited. All Rights Reserved.