Source: Bloomberg
“In Jackson Hole this weekend, Federal Reserve Chair Jerome Powell outlined two priorities for the months ahead: keeping the US economy afloat while also taking a closer look at what went wrong over the past few years. Headlines from the Fed chair’s Friday speech were dominated by his concerns over the state of the cooling labor market. But Powell also previewed what will be the Fed’s first formal review of its strategy since being caught off guard by an inflation surge during the pandemic, a mistake that forced officials to raise interest rates rapidly to catch up. … With inflation almost back to the Fed’s target and concerns over unemployment rising, the central bank is poised to begin cutting rates in September. That’s bringing questions about how quickly it needs to ease and where rates will ultimately settle into the spotlight.” (08/25/24)