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Investors Eagerly Await Fed Chair Powell's Jackson Hole Speech
21 Aug
Summary
- U.S. dollar hovers below one-week high as investors await Fed symposium
- European stocks open flat, Asian markets see mixed performance
- Traders closely watching for hints of September rate cut from Powell
As the Federal Reserve's annual Jackson Hole symposium kicks off today, investors are eagerly anticipating the key event of the three-day conference: a speech by Fed Chair Jerome Powell on Friday. The U.S. dollar has hovered below a one-week high, while European stock markets opened flat and Asian markets saw a mixed performance.
Traders are closely watching the symposium, hoping to gauge the chances of a September rate cut from the Fed. The central bank's July meeting minutes suggested that only two policymakers, Vice Chair Michelle Bowman and Governor Christopher Waller, were pushing for a rate cut at that time. However, a weaker-than-expected jobs report and limited impact from tariffs on consumer prices have increased the odds of a September cut, which are currently priced in at around 80%.
Despite the market uncertainty, the underlying momentum for equities remains strong, with Australia's benchmark hitting a record high. Other Asian indexes have also held near recent peaks, though Japan's Nikkei dipped 0.6%. Nasdaq futures pointed slightly higher, while S&P 500 futures were flat after the cash index slipped 0.2% overnight.
Investors will be closely listening to Powell's speech on Friday, as his comments could provide crucial insights into the Fed's policy direction and the likelihood of a rate cut in the near future.
