Investors are turning their attention to Federal Reserve Chairman Jerome Powell’s upcoming address at the annual economic symposium in Jackson Hole, Wyoming, scheduled for Friday. Treasury yields have responded, with the 10-year yield increasing slightly over 1 basis point to 4.308% as of 4:01 a.m. ET, while the 2-year yield rose to 3.758%.
Interest in the event is heightened by the gathering of global central bankers who will deliberate on future monetary policies. Market analysts indicate there is approximately an 80% probability that the Federal Reserve will lower interest rates during its policy meeting in September, as suggested by the CME Group’s FedWatch tool.
Minutes from the recent Federal Open Market Committee (FOMC) meeting, released on Wednesday, highlighted officials’ concerns regarding inflation and the labor market, with a consensus that it remains premature to reduce interest rates. Notably, Fed Governors Christopher Waller and Michelle Bowman voiced their dissent over the decision to maintain current rates—a rare occurrence, as it marks the first time since 1993 that two voting Fed officials have disagreed.
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“The Fed is worried about inflation accelerating as companies pass tariffs on to consumers,” commented David Russell, the global head of market strategy at TradeStation. He added, “The minutes are consistent with Powell’s hawkish comments from the last meeting. The bulls might get some cold water splashed in their faces at Jackson Hole.”
In the broader economic context, investors are also awaiting reports on existing home sales and initial jobless claims for further insights.
