View: Fed's Powell May Stay Neutral at Jackson Hole Conference

On August 21st, Blerina Uruci, the Chief U.S. Economist of T. Rowe Price, stated that during the Jackson Hole meeting, Federal Reserve Chairman Powell's speech may lay emphasis on maintaining maximum flexibility for the upcoming FOMC meetings and suggest that the policy path will be contingent upon inflation and labor market data. She pointed out that prior to the Fed meeting on September 17th, there will also be a jobs report and a CPI report. In the event that inflation rises significantly or the labor market exhibits strong improvement, the likelihood of keeping rates unchanged at the next meeting is higher; if August job growth drops to below 50,000 per month and the unemployment rate rises, there may be a dovish rate cut of 50 basis points. (Golden Finance)