Today is an Important Day: Jerome Powell Will Speak at Jackson Hole

Jerome Powell is expected to give a speech at the Jackson Hole economic conference for the last time since being appointed to this position by President Donald Trump in 2017. Powell will deliver a speech that global central bank leaders will closely follow at an event held at Jackson Lake Lodge in Wyoming. Seven speeches by Powell at Jackson Hole to date have addressed many topics, from the history of monetary policy to employment goals, from anti-inflation strategies to commitments to support during the pandemic. Each speech is a highlight, revealing clues about the Fed's next interest rate move. Here is what he said in previous years and what happened next: 2018 – Powell emphasized the importance of gradually increasing interest rates. Four interest rate hikes were implemented during the year. 2019 – Powell, emphasizing the decline in global growth and trade instability, stated that the Fed would act when necessary. The Fed cut interest rates three times during the year. 2020 – In an online speech due to the pandemic, Powell announced a new strategy, including a maximum employment target and an average inflation of 2%. 2021 – Powell argued that inflation would only be temporary and suggested that there was no need to rush to raise interest rates. However, this approach later faced criticism. 2022 – Powell clearly stated that higher interest rates and an economic downturn to combat inflation would bring "pain." The Fed continued to aggressively raise interest rates. 2023 – Powell, believing that inflation was improving, stated that interest rate hikes could continue if necessary. The policy interest rate remained unchanged at 5.25%-5.50%. 2024 – Focusing on maintaining employment as inflation risks decrease, Powell stated that it was time to cut interest rates. The Fed will cut interest rates by 50 basis points in September 2024. Powell's speech this year is expected to include important messages about whether the rate-cutting process will continue or not.