Fed Chairman Jerome Powell will lead a key meeting in Jackson Hole next week, where global financial leaders and economists will gather to discuss key economic issues. Powell indicated last month that if inflation and the labor market continue to deteriorate, the Fed could consider cutting interest rates at its upcoming meeting.
The Fed has kept its policy rate at a range of 5.25% to 5.50% for more than a year to curb economic growth and maintain pressure to curb inflation. However, weak labor market data earlier this month has fueled widespread concerns among investors that the Fed has kept its restrictive policy too long and may need to make a more aggressive move of cutting interest rates by up to half a percentage point in September, or perhaps sooner, to stave off a looming recession.
The Jackson Hole meeting will provide investors and the administration with insight into how the Fed will respond to current economic challenges, amid slowing growth and ongoing disinflationary pressures.
by: Latest Crypto News