{"id":2011661,"date":"2023-08-25T04:57:01","date_gmt":"2023-08-25T08:57:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/powell-expected-to-walk-tightrope-on-future-fed-action-in-very-anticipated-annual-speech\/"},"modified":"2023-08-25T05:00:30","modified_gmt":"2023-08-25T09:00:30","slug":"powell-expected-to-walk-tightrope-on-future-fed-action-in-very-anticipated-annual-speech","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/powell-expected-to-walk-tightrope-on-future-fed-action-in-very-anticipated-annual-speech\/","title":{"rendered":"Powell to tread carefully on future Fed action in highly-anticipated speech."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fpowell-expected-to-walk-tightrope-on-future-fed-action-in-very-anticipated-annual-speech%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2011661&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Federal Reserve Chairman Jerome Powell to Deliver Annual \u200cSpeech at\u200c Jackson Hole \u200dSymposium<\/h2>\n<p>Federal Reserve Chairman Jerome Powell is set to give\u2063 his \u2063annual speech\u2062 on Friday and will try to offer \u200ca clear monetary\u200c policy vision while treading lightly given\u200d market volatility.<\/p>\n<p>The\u200b Federal Reserve chief is the headliner for the Jackson Hole \u2063Symposium, which is held\u2062 each\u2064 year in Jackson Hole, Wyoming, and is hosted by\u2062 the Kansas City Fed. Economists have descended upon the Jackson\u200b Lake Lodge for three days of speeches, dinners, and discussions, but Powell\u2019s speech, slated for 10:05 a.m., is the main event.<\/p>\n<blockquote>\n<h3>Market Volatility Heightens Anticipation for Powell&#8217;s \u200cSpeech<\/h3>\n<p>As investors anxiously await the \u200cspeech, the\u2062 Dow on Wednesday\u2063 plunged by nearly 400 points, and the S&#038;P 500 \u200bdropped\u2063 by about 1.4%. The\u200c speech, given the content and the tone, has the ability to greatly move markets as all eyes turn to Jackson Hole.<\/p>\n<p>Economists, investors, and\u200b reporters will hang on every word that Powell says, hoping to glean some insight into where his thinking is on monetary policy. The \u2064speech has the ability to\u2063 move global markets, as was evinced by last year\u2019s address, which caused the Dow Jones Industrial Average to plunge 1,000 points.<\/p>\n<\/blockquote>\n<p>The main thing that listeners will be tuned\u2062 in for is to see whether central bank\u200c officials might raise the Fed\u2019s \u200binterest rate target one more \u200ctime this year. In \u2063the Fed\u2019s most <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/powell-expected-to-walk-tightrope-on-future-fed-action-in-very-anticipated-annual-speech\/\" title=\"Powell to tread carefully on future Fed action in highly-anticipated speech.\">recent \u201cdot plot\u201d released<\/a> in June, most Fed officials predicted one \u2064more increase\u200d this year. But more recent\u2064 economic data has shown meaningful inflationary improvements, leading many to think that the Fed might\u200d be done tightening.<\/p>\n<blockquote>\n<h3>Impact on Markets: All\u200d Eyes on Potential Rate Hike<\/h3>\n<p>If \u200cPowell strikes a hawkish tone, as he did last year, and makes it \u200dseem like another rate hike might be\u200d on \u200cthe menu, markets will likely fall, perhaps by a large margin. Rate increases naturally squelch demand\u2063 so any \u2064indication\u200c of another rate revision is bad news for stocks.<\/p>\n<p>Conversely, if Powell \u2062hints that recent favorable economic developments are moving the needle closer\u200b to a pause, stocks \u200dwould \u200dlikely \u200brise.<\/p>\n<\/blockquote>\n<p>Bill Adams, chief economist\u2063 for Comerica Bank, told\u200d the Washington Examiner that while Fed chairs sometimes use the Jackson Hole speech to announce big changes to their <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-chair-inflation-to-remain-elevated-before-moderating\/\" title=\"Fed chair: Inflation to remain elevated before moderating\">monetary policy strategy<\/a>, given \u200cthe\u2062 current situation,\u2063 Powell\u200d will likely not announce \u2064anything too unexpected. He noted that members of the Federal \u200dOpen \u2064Market Committee, which votes on rate hike\u200d decisions, appear to be at least somewhat divided on how\u200d best to \u200dproceed.<\/p>\n<p>\u201cChair \u200cPowell in his role as Fed chair speaks for the FOMC as a whole and since \u200dthere is some disagreement among its members\u200b about what to do\u200d next, he is probably going to give pretty limited guidance to what their next move will be,\u201d Adams\u2064 said.<\/p>\n<p>It is also complicated because\u200b inflation\u200b numbers can be looked at by two different people who can assess two different stories about what the data \u200btell.<\/p>\n<blockquote>\n<h3>Inflationary Concerns and Housing Market Impact<\/h3>\n<p>Headline inflation declined to \u2064a 3.2% annual rate in July, increasing just 0.2% from June to\u2063 July. That is\u200b nearing the Fed\u2019s 2% annual inflation goal as 0.2% monthly inflation would equate to\u200c 2.4%\u200b annual inflation \u2063if that level held steady for a \u200cyear.<\/p>\n<p>On the other hand, \u2064\u201ccore inflation,\u201d which strips\u200c out volatile food \u200band energy prices and \u200cis considered to\u2064 be an indicator of sticky inflation, is still running at a 4.7% annual rate (although in \u2063July it also only ticked up 0.2%). Sticky inflation is inflation\u200d that doesn&#8217;t respond quickly to changes in demand.<\/p>\n<\/blockquote>\n<p>\u201cInflation has been a little bit sticky. &#8230;\u2064 It\u2019s\u200b still a little sticky when you look at core,\u201d Brian\u2062 Marks, executive director of the University of New Haven\u2019s Entrepreneurship and Innovation Program, \u200ctold the Washington Examiner. \u2063Marks said he expects another rate hike, or perhaps even two more given the \u2063economic conditions.<\/p>\n<p>Powell has\u200b made\u200b taming inflation his top priority, so, looking through\u200d the hawkish\u200b lens, \u200che might\u200c think it a safer \u2064bet for long-term inflationary stability to do one more rate hike.<\/p>\n<p>But investors think that the\u200c Fed is most likely done hiking. About 83% think that the \u2064Fed will hold rates steady, according to CME \u200cGroup\u2019s FedWatch tool, which calculates the\u200b probability using futures contract prices for rates in the short-term\u200c market targeted by the Fed.<\/p>\n<p>One \u2063topic that Powell\u2064 will likely discuss is how the\u200b Fed\u2019s policy action has affected the housing market. Mortgage\u200b rates have risen \u2064to highs not seen since the turn of the \u2063century because mortgage rates rise when the Fed\u2019s rate target increases so another rate increase, or even\u2062 the \u200cmere perception that one is coming down the \u2064pipeline, would send mortgage rates even higher\u200c and make housing affordability an even bigger\u200c challenge for consumers.<\/p>\n<p>As of Thursday,\u2064 the \u2062average \u200crate on a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/middle-class-millennials-hard-hit-by-housing-market\/\" title=\"Middle Class, Millennials Hard Hit By Housing Market\">30-year fixed-rate mortgage<\/a> was \u200bsitting\u200d at soared \u2064to 7.36%, according to Mortgage \u200cNews Daily. The last \u2062time rates were this high was November 2000.<\/p>\n<p>The speech also comes after a \u2064turbulent year in the banking sector. The sudden failures of Silicon Valley Bank and Signature Bank caused\u2063 the \u2062Fed to step in and attempt\u200c to calm the industry.<\/p>\n<p>\u201cHe\u2019ll probably talk about the stability \u200cof the banking industry. \u200c&#8230; He\u2019ll talk about the credit \u200btightening that the banking industry has been doing,\u201d Marks said of Powell.<\/p>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\/\">CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Federal Reserve Chairman Jerome Powell will deliver his annual speech on Friday, aiming to provide a concise monetary policy vision amidst market volatility. As the main attraction at the Jackson Hole Symposium in Wyoming, hosted by the Federal Reserve, Powell will carefully navigate his remarks to address the current economic climate.<\/p>\n","protected":false},"author":1,"featured_media":2011662,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2011661","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2011661","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2011661"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2011661\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2011662"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2011661"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2011661"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2011661"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}