26 August 2022 | Other

Prospects of Powell’s Speech for the economic environment

Prospects of Powell’s Speech for the economic environment 

The upcoming speech by Fed Chairman Jerome Powell, scheduled for August 26, touches upon the potential for tightening the U.S. monetary policy. 

A symposium takes place at Jackson Hole, Wyoming. The speech starts at 10:00 am Washington time. Fed officials have already commented on the current economic state. Thus, Powell's possible announcement of a further interest rate hike, due to high inflation in the U.S., remains a cause for concern. 

Increased securities yields, compared to June lows, as well as a positive labor market dynamics, may contribute to the monetary ease. However, the publication of data is about to happen in September. Until that, the key rate is estimated to increase by 50 or 75 basis points, which, in turn, would put pressure on economic growth rates.

U.S. Central Bank officials also stressed the need for a rise, given the record high inflation over the past 40 years. Federal Reserve Bank spokeswoman Esther George noted that the possibility of an interest rate hike to 4% cannot be ruled out. Nevertheless, it is too early to give a full assessment, since there is a lack of statistical data.

In fact, Powell's speech is unlikely to cause "a sharp swing in the stock market as expectations are quite high, while exposure remains low," said Dennis DeBuscher, founder of 22V Research.


Company MarketCheese
Brent sell
Period: 11.07.2025 Expectation: 400 pips
Brent falls ahead of OPEC+ decisions
Yesterday at 10:05 AM 28
Period: 18.07.2025 Expectation: 900 pips
AUDCAD is likely to keep pulling back from its monthly high
Yesterday at 08:08 AM 28
Period: 10.07.2025 Expectation: 1200 pips
Selling USDJPY during rebound with 142.430 target
03 July 2025 53
Period: 11.07.2025 Expectation: 220 pips
Heatwaves across Europe and US support gas price recovery from recent lows
03 July 2025 145
Period: 08.07.2025 Expectation: 1500 pips
EURUSD rally faces potential correction toward 1.165
02 July 2025 78
Period: 09.07.2025 Expectation: 1400 pips
USDCAD declines amid US dollar weakness and improving Canadian trade prospects
02 July 2025 55
Go to forecasts