Powell to Address Rate Outlook and Leadership Transition at Jackson Hole Speech

Federal Reserve Chair Jerome Powell is set to deliver a speech on August 22 at 10:00 AM Eastern Time (10:00 PM Beijing Time), ahead of the Kansas City Federal Reserve’s annual symposium in Jackson Hole, Wyoming. The speech is expected to outline the economic outlook and the Fed’s evaluation of its policy framework, with markets closely watching for signals on future interest rate decisions and leadership transition plans [1].

Recent data suggests that inflation remains steady at 2.7% in July, and the labor market is showing signs of cooling, creating a mixed backdrop for policymakers [3]. These conditions have led to speculation that the Federal Reserve may consider a 25 basis point rate cut at the next meeting. However, Powell has tempered market expectations, prompting investors to adopt a more cautious stance, especially following his remarks on the September meeting [2].

U.S. President Trump has also intensified pressure for rate cuts and has reportedly been exploring candidates to replace Powell, whose current term as Federal Reserve Chair is set to expire in May 2025. While no official announcements have been made, the market is closely monitoring for any indication of the Fed’s succession planning [6].

The implications of Powell’s speech extend beyond domestic markets, as the Federal Reserve’s decisions significantly influence global financial conditions. A clear or nuanced message from the central bank could shape investor positioning in equities, bonds, and currencies, with heightened volatility already observed in advance of the event [8].

Powell’s communication strategy plays a critical role in managing market expectations, particularly in a delicate economic environment. As the Federal Reserve balances its dual mandate of price stability and maximum employment, any shift in tone could signal a broader policy direction in the coming months. The August 22 speech is therefore anticipated to be a pivotal moment for both short-term monetary policy and long-term institutional stability.

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Source:

[1] BlockBeats News, Federal Reserve Chair to Deliver Speech on the 22nd, Market Focused on Rate Cut Expectations and Succession Plan Issues (https://www.theblockbeats.info/en/flash/307541)

[2] Our Podcasts (https://www.juliusbaer.com/en/insights/podcasts/)

[3] July Inflation Held Steady With 2.7% Rise (https://www.wsj.com/public/resources/documents/C5Loi6Ap5M4DHi62o2DU-WSJNewsPaper-8-13-2025.pdf?gaa_at=eafs&gaa_n=ASWzDAgnJkrTcZt8g5SkVZzWLnINfnMlDab4EoZ4mXky5ZLcNKdHElk3eVOm&gaa_sig=aDLm-Qn9ZD9uW0TeqyL-P4yawjZSz-r6JIBHu_b6JjSRsWLIPDK2oCXgND8igvPGSWg8_J9Z2taHcIoPS04ITg%3D%3D&gaa_ts=689ea63b)

[6] China Maritime Report 49—“The PLAN Corruption Paradox (https://www.andrewerickson.com/2025/08/china-maritime-report-49-the-plan-corruption-paradox-insights-from-the-1st-destroyer-flotilla/)

[8] MLQ.ai | Stocks (https://mlq.ai/news/)