During a recent meeting at Jackson Hole, Jerome Powell raised questions about potential changes in monetary policy, drawing interest towards future decisions by the Federal Reserve.
Jerome Powell's Remarks at Jackson Hole
In his speech at Jackson Hole, Fed Chairman Jerome Powell opened the door to the possibility of a rate cut, stating, "It’s time to change the policy stance."
JPMorgan's Short-Term Interest Rate Forecast
A recent report from JPMorgan Chase suggests that the Fed is unlikely to cut interest rates at its September meeting, despite Powell signaling a potential return to rate reductions.
Internal Dynamics of the Fed Ahead of the Meeting
Economist Bruce Kasman from JPMorgan predicted significant infighting among Fed members regarding interest rate cuts during the September meeting. He noted that if the Fed cuts rates early and inflation rises again, it would complicate matters further.
Thus, the current market situation and dynamics within the Federal Reserve indicate that a decision to cut interest rates in September may be delayed.
