Every year, the Federal Reserve Chairman delivers a highly anticipated speech at the annual economic seminar for the World Central Bank of Kansas City Federal Reserve in Jackson Hole, Wyoming. It helps investors focus on possible monetary policy in the coming months.
Powell's remarks could provide the clarity many investors have been looking for, or it could inject more uncertainty into the Fed's next move at its September meeting next month.
Either way, whatever Powell does (or is impossible) says, can transfer financial markets that have been lowering expectations toward new records.
But in addition to tensions surrounding monetary policy action, this year's speech also conducted an unprecedented scrutiny of the Fed as an institution.
The Fed has been under a full-scale attack from President Donald Trump for months, who not only sent a series of personal insults to Fed Chairman Jerome Powell and talked about firing him, but also federal governor Lisa Cook, who is now trying to uncooked food, appointed by former President Joe Biden. The president's frustration is due to the Fed's failure to reduce borrowing costs this year.
The speech can be said to be Powell's last position, and his term ends in May 2026. Treasury Secretary Scott Bessent has led the search for a replacement for Powell, who can announce his draft pick a few months before Powell's term ends. Two federal governors (the same as Powell’s in the same ranking) are currently considering the chairman, highlighting the rare differences among central banks.
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