Anticipation Builds for Powell's Jackson Hole Speech in Echoes of Last Year

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similar to last year's Jackson Hole event, when investors watched the annual speech for clues about possible rate cuts in September.This time, the economic conditions are different, and rate cuts are considered likely but not guaranteed.As was the case last year, Wall Street will keenly watch Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole economic conference, looking for signs that the central bank is about to cut interest rates. Last year, he delivered, but this year could be a different story.Powell is scheduled to speak Friday at 10 a.m. Eastern Time. His speech, titled “Economic Outlook and Framework Review,” could be anything but boring for financial markets. Powell could use the speech to discuss the Fed’s long-term strategy for monetary policy, the central bank’s independence, or the outlook for interest rates in the next few months. In the latter respect, the speech has similar significance to one he gave at Jackson Hole in 2024.Here’s what he said back then, and what he might say this time around:In 2024, as today, the economy seemed to be at a turning point.The rapid price increases of the post-pandemic era had simmered down, the job market was solid, and most forecasts called for a “soft landing” rather than an economic crash. But then, as now, some red flags were starting to wave in the job market: a worrisome uptick in the unemployment rate sparked fears of a surge in joblessness.To Powell and the other members of the central bank’s policy committee, the time was right for the Fed to start easing its high interest rates, which had been in place for more than a year. High rates had done their job of quelling inflation, and it was time to boost the economy with lower borrowing costs that encourage hiring.Powell used his Jackson Hole speech to say the Fed was pivoting and would lower the fed funds rate from a two-decade high at its policy committee’s next meeting. He said in very clear terms that inflation was more under control and the Fed would soon cut interest rates.“The upside risks to inflation have diminished. And the downside risks to employment have increased,” Powell said. “The time has come for policy to adjust. The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.”The Fed went on to cut interest rates by a full percentage point over its next three meetings.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,466.91 +96.74 (+1.52%)Dow 3045,631.74 +846.24 (+1.89%)Nasdaq21,496.54 +396.22 (+1.88%)Russell 20002,361.95 +87.85 (+3.86%)VIX14.22 -2.38 (-14.34%)Gold3,417.20 +35.60 (+1.05%)PortfolioSign in to access your portfolioSign inTop gainersOPEN Opendoor Technologies Inc. 5.01 +1.41 (+39.17%)UI Ubiquiti Inc. 510.23 +119.66 (+30.64%)MNSO MINISO Group Holding Limited 26.63 +4.46 (+20.12%)RXO RXO, Inc. 16.97 +2.27 (+15.44%)NIO NIO Inc. 6.34 +0.80 (+14.44%)Top losersNEGG Newegg Commerce, Inc. 100.75 -15.03 (-12.98%)BJ BJ's Wholesale Club Holdings, Inc. 97.11 -9.05 (-8.52%)INTU Intuit Inc. 662.66 -35.10 (-5.03%)DUOL Duolingo, Inc. 331.87 -13.65 (-3.95%)CSX CSX Corporation 34.58 -1.29 (-3.60%)Most activeOPEN Opendoor Technologies Inc. 5.01 +1.41 (+39.17%)NIO NIO Inc. 6.34 +0.80 (+14.44%)INTC Intel Corporation 24.80 +1.30 (+5.53%)NVDA NVIDIA Corporation 177.99 +3.01 (+1.72%)LCID Lucid Group, Inc. 2.0300 -0.0600 (-2.87%)Earnings eventsTrending tickersINTC Intel Corporation 24.80 +1.30 (+5.53%)ETH-USD Ethereum USD 4,694.76 +408.86 (+9.54%)OPEN Opendoor Technologies Inc. 5.01 +1.41 (+39.17%)TSLA Tesla, Inc. 340.01 +19.90 (+6.22%)^DJI Dow Jones Industrial Average 45,631.74 +846.24 (+1.89%)Top economic events