According to Odaily, during the recent Jackson Hole Economic Symposium, Federal Reserve Chair Jerome Powell indicated a shift in the central bank's primary focus from combating inflation to safeguarding employment. Powell stated that further cooling of the labor market would be 'unwelcome.' Notably, he refrained from using the term 'gradual' to describe the pace of future rate cuts, leading some investors to speculate that this opens the door for more rapid rate reductions.
Traders now anticipate that the Federal Reserve will cut interest rates by a full percentage point by the end of this year. This expectation suggests that one of the remaining three meetings in 2024 will see a 50 basis point rate cut.