Wall Street Predicts Powell Will Confirm an Upcoming Rate Cut at the Jackson Hole Symposium, Market Volatility Stirred by the Magnitude of the Cut
Publication Time:2024-08-19 08:01:08
Cointelegraph reports that Wall Street is eagerly anticipating the speech of Federal Reserve Chair Jerome Powell at the Jackson Hole Symposium, with widespread anticipation that he will confirm the Fed’s intention to cut interest rates. While the market has already fully factored in that the Fed will begin cutting rates in September, the focus has shifted from “will there be a rate cut?” to “how big will the cut be?” This has sparked concerns among stock traders about potential disappointment. The Executive Director and General Manager of Wealth Management at Steward Partners Global Advisory, Eric Beiley, notes that if Powell merely mentions the possibility of a rate cut without specifying the magnitude, it could lead to a negative market response. As such, the market holds a high degree of confidence in the upcoming rate cut, particularly regarding it as part of a sustained policy adjustment. If Powell does not clearly indicate that this will be a critical step in future interest rate movements, it will be viewed as a significant surprise, potentially causing substantial market fluctuations.
Market Volatility
Jackson Hole Symposium
Magnitude of Rate Cut
Wall Street Prediction
Powell Rate Cut