{"id":2011707,"date":"2023-08-25T07:51:01","date_gmt":"2023-08-25T11:51:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/powell-expected-to-walk-tightrope-on-future-fed-action-in-anticipated-annual-speech\/"},"modified":"2023-08-25T07:54:24","modified_gmt":"2023-08-25T11:54:24","slug":"powell-expected-to-walk-tightrope-on-future-fed-action-in-anticipated-annual-speech","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/powell-expected-to-walk-tightrope-on-future-fed-action-in-anticipated-annual-speech\/","title":{"rendered":"Powell to navigate cautiously in upcoming speech on Fed&#8217;s future actions."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><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-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=2011707&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 \u2064Deliver Annual Speech at Jackson Hole Symposium<\/h2>\n<p>Federal Reserve Chairman Jerome \u200dPowell is set\u2062 to give his\u2063 annual speech on Friday and will try to offer a clear monetary policy vision while \u2062treading\u200b lightly given \u2064market volatility.<\/p>\n<p>The Federal Reserve chief is the headliner for the Jackson Hole Symposium, which is held each year\u2062 in Jackson Hole, Wyoming, and is hosted by the Kansas \u200bCity Fed. Economists have descended\u200c upon the Jackson Lake \u200bLodge\u2064 for three \u2064days of speeches, dinners, and\u200b discussions, but Powell\u2019s speech, slated for 10:05 a.m., is the main event.<\/p>\n<blockquote>\n<h3>Market \u2062Volatility \u2063Heightens Anticipation for Powell&#8217;s Speech<\/h3>\n<p>As investors \u2064anxiously await the speech, the Dow on Wednesday \u2062plunged\u2064 by nearly 400 points, and\u2062 the S&#038;P 500 dropped by about 1.4%. The speech, \u2062given the content and the tone, could greatly move markets as all eyes turn \u200dto Jackson Hole.<\/p>\n<p>Economists, investors, and reporters will hang on every word that\u2064 Powell says, hoping to\u200d glean some insight into where his thinking is on monetary\u2064 policy. The \u2063speech has the ability to \u2064move\u200d global \u2062markets, as was evinced\u200d by \u200dlast year\u2019s address, which\u2063 caused the \u2064Dow Jones Industrial Average to plunge 1,000 points.<\/p>\n<\/blockquote>\n<p>The main\u200d thing that \u2064listeners will be tuned in \u2064for is to see whether central\u200b bank officials might \u2062raise the Fed\u2019s interest rate target\u2062 one more time this year. In the 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 \u2062Fed \u200cofficials predicted \u2064one more increase this year. But\u200c more\u2063 recent economic data has <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/powell-expected-to-walk-tightrope-on-future-fed-action-in-anticipated-annual-speech\/\" title=\"Powell to navigate cautiously in upcoming speech on Fed's future actions.\">shown meaningful inflationary improvements<\/a>, \u200bleading \u200dmany to think that the Fed might be \u200ddone tightening.<\/p>\n<blockquote>\n<h3>Impact on \u2062Markets and Stocks<\/h3>\n<p>If Powell strikes a hawkish tone, as he did last year, and makes it seem \u2062like another\u2063 rate\u200b hike might be on the menu, markets\u200d will likely fall, perhaps by a large margin. Rate increases \u2064naturally squelch demand so any indication of another \u200crate \u2062revision is\u200d bad news for stocks.<\/p>\n<p>Conversely, if Powell hints that recent \u200dfavorable economic\u2063 developments are \u200cmoving\u200c the needle closer to a \u2062pause,\u200c stocks would likely rise.<\/p>\n<\/blockquote>\n<p>Bill Adams, chief \u2063economist for Comerica Bank, told the Washington \u200bExaminer that \u2062while Fed chairs\u2063 sometimes use the Jackson Hole speech to announce big changes to their\u200b <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 the current situation, Powell will likely not announce\u2062 anything too unexpected. He noted that members of the Federal Open \u200cMarket Committee,\u2062 which votes on\u2063 rate hike decisions, appear to be at least somewhat divided on how \u2063best\u200c to proceed.<\/p>\n<p>\u201cChair\u2064 Powell in his\u200c role as Fed\u2063 chair \u2063speaks for the FOMC as\u2063 a whole and \u200bsince there is some disagreement among its members \u200dabout what to do next, he is probably going \u2064to give pretty limited guidance to what their next \u200dmove will be,\u201d Adams said.<\/p>\n<p>It is also complicated because\u200b inflation numbers\u200d can be looked at by two different people who can \u2064assess two different stories about what the data tell.<\/p>\n<blockquote>\n<h3>Inflationary Concerns and\u200c Monetary Policy<\/h3>\n<p>Headline inflation declined to a 3.2% annual rate \u200din July, \u200dincreasing just\u2062 0.2% from June to July. That \u200cis nearing the Fed\u2019s 2% annual inflation goal \u2062as 0.2% monthly inflation \u2064would equate to\u2064 2.4% annual inflation if that level held steady \u200cfor a year.<\/p>\n<p>On the \u2064other hand, \u201ccore inflation,\u201d which strips out volatile\u200c food and energy prices and is considered \u2062to\u2063 be an indicator of sticky inflation, is still running at a 4.7% annual rate (although in July\u200c it also only ticked \u2064up \u200b0.2%). Sticky inflation\u2063 is\u2063 inflation \u200dthat doesn&#8217;t respond quickly to changes \u2063in demand.<\/p>\n<\/blockquote>\n<p>\u201cInflation has been a little bit sticky. &#8230; \u2064It\u2019s still a\u200d little sticky when you look at\u200d core,\u201d Brian Marks, executive director of the\u2063 University of New Haven\u2019s\u200b Entrepreneurship and Innovation \u2063Program, told the Washington Examiner. Marks said he expects another\u2063 rate hike,\u2064 or perhaps even two more given the economic conditions.<\/p>\n<p>Powell has made taming inflation his top priority, so, looking \u2062through the hawkish lens, he might\u200c think it a safer bet for long-term inflationary stability to do one more rate hike.<\/p>\n<p>But investors think that the Fed is most likely done hiking. \u2064About 83% think that the Fed will hold rates steady, according to CME Group\u2019s FedWatch tool, which\u2063 calculates\u200c the \u200cprobability using futures contract prices for rates \u2063in the short-term \u2062market targeted by the\u200c Fed.<\/p>\n<p>One \u2062topic that Powell will likely discuss is how\u2063 the Fed\u2019s policy action has affected the housing market. Mortgage rates have \u200drisen to highs not seen since\u200d the turn of the century\u2062 because mortgage rates rise when the Fed\u2019s \u2064rate\u200d target increases so \u2064another rate increase, or even \u200bthe mere perception that one is coming down the\u200c pipeline, would\u200b send mortgage \u200drates even higher and make housing affordability an even bigger challenge for consumers.<\/p>\n<p>As of\u2063 Thursday, the average rate on \u2062a 30-year fixed-rate\u2064 mortgage was sitting at soared to \u200b7.36%, according to Mortgage News \u2064Daily. The last time rates were this high\u200b was\u2064 November 2000.<\/p>\n<p>The speech also comes after a\u200d turbulent year in the\u200c banking sector. The sudden\u2062 failures of Silicon Valley Bank and Signature Bank\u2063 caused the Fed to step in and attempt to calm the industry.<\/p>\n<p>\u201cHe\u2019ll probably talk about the\u2064 stability of\u2064 the banking industry.\u200c &#8230; \u200cHe\u2019ll talk about the \u2063credit tightening\u200b that the \u2062banking industry has been doing,\u201d Marks\u2064 said\u200b of Powell.<\/p>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\/news\/federal-reserve-chairman-jerome-powell-to-give-annual-speech-at-jackson-hole-symposium\">CLICK HERE TO READ MORE FROM \u2064THE 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":2011708,"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-2011707","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\/2011707","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=2011707"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2011707\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2011708"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2011707"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2011707"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2011707"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}