- Powell speaks today at 10 AM ET at Jackson Hole as markets look for rate cut signals ahead of the September 17 FOMC meeting.
- A recent miss in job numbers supports a case for easing, but hot inflation data complicates the Fed’s next steps.
- Traders brace for volatility — Powell’s tone could trigger a rally or a steep correction across risk assets.
All eyes are on Fed Chair Jerome Powell’s speech today at Jackson Hole. With rate cuts on the table and inflation still lurking, markets are Preparing for strong reactions based on his tone and guidance.
Mixed Signals Set the Stage
Jerome Powell will take the stage at Jackson Hole today at 10:00 AM ET, with markets watching closely. This marks his first major appearance since the latest jobs report released on 1 August that disappointed investors.
Since the last FOMC meeting, job data has shown clear weakness. Recent numbers revealed a large miss, with major downward revisions. This has shifted sentiment toward rate cuts, especially with unemployment rising. The CME FedWatch Tool now shows a 71.3% chance of a rate cut at the upcoming FOMC meeting on September 17.
However higher inflation adds pressure to the situation. The latest Producer Price Index (PPI) came in higher than expected, hinting that inflation may not be done yet. This complicates the Fed’s job — cutting rates could stimulate inflation, while holding steady risks further slowing the economy.
Volatility Ahead as Powell Speaks
Markets are on edge. Powell’s tone today could decide short-term direction for both traditional and crypto markets.
A dovish tilt,any mention or signal of potential cuts could lead to a rally. Stocks and crypto often react sharply to Fed cues. On the other hand, a firm stance on keeping rates high could trigger a selloff.
Adding to the tension is political pressure. Former President Donald Trump has recently criticized Powell, blaming him for high mortgage rates and calling for immediate cuts. Powell has so far stayed focused on economic data and remained silent on political remarks.
His speech comes as the Fed tries to balance its dual mandate — keeping inflation in check while supporting employment. With no rate change in eight months, today’s comments may finally hint at what’s next.
