Investors were hoping for a signal of moderated rate increases
JACKSON HOLE, Wyoming — Federal Reserve Chair Jerome Powell delivered a stark message Friday: The Fed will likely impose more large interest rate hikes in coming months and is resolutely focused on taming the highest inflation in four decades.
Powell’s message may disappoint investors who were hoping for a signal that the Fed might soon moderate its rate increases later this year if inflation were to show further signs of easing. Powell’s remarks were to kick off the Fed’s annual economic symposium at Jackson Hole, the first time the conference of central bankers will be held in person since 2019, after it went virtual for two years during the COVID-19 pandemic.
Yet the central bank finds itself at a turning point. At a news conference after its last policy meeting in late July, Powell suggested that the Fed might decide to slow its rate hikes after having imposed two straight three-quarter-point increases — historically large moves — in June and July. “He’s got to kind of take on the uncertainty about the outlook and try to explain what will they be looking for to make their policy decisions,” said William English, a professor at the Yale School of Management and former senior economist at the Fed.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Powell speech, Gap gains and more: Friday's 5 things to knowThe main event of the week will be Fed Chairman Jerome Powell's speech on the economy and interest rates at the annual Jackson Hole meeting on Friday.
Read more »
Market Wrap: Bitcoin Price Barely Budges as Traders Await Powell SpeechBitcoin traded sideways on Thursday as Fed officials speaking during the first day of the central bank’s Economic Symposium were circumspect about an interest rate hike in September.
Read more »
Fed's Bostic says he's leaning toward a half percentage point interest rate hike in SeptemberAtlanta Fed President Raphael Bostic said Friday he's leaning toward a 50 basis point rate hike in September.
Read more »
Gold price wavers as traders weigh outlook for Fed tightening pathInvestors are assessing how aggressively the Fed can continue hiking rates in the face of mounting risks to growth.
Read more »
Asian stocks follow Wall St higher ahead of Fed chair speechAsian stocks followed Wall Street higher ahead of speech by the Federal Reserve chair that investors hoped will shed light interest-rate hiking plans.
Read more »
Fed's Powell in Jackson Hole spotlight with speculation on ratesFed Chair Jerome Powell will have the attention of economists and central bankers on Friday when he gives a speech at the Jackson Hole gathering.
Read more »