NEW YORK (NewsNation) — Federal Reserve chair Jerome Powell and other central bank leaders are gathering this week in Wyoming for the annual Jackson Hole Economic Symposium, a pivotal event for global markets and monetary policy.
This year’s summit carries additional weight: it will be Powell’s last appearance at Jackson Hole as Fed chair before his term ends in May 2026. It also comes at a time of mounting pressure from both Wall Street and the White House, as President Donald Trump continues to push the central bank to align with his tariff-driven economic agenda.
With so much at stake, global markets will be parsing every word Powell delivers in Wyoming.
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September rate cut predicted
Markets are already betting heavily on a rate cut next month.
Following the release of minutes from the Fed’s most recent meeting, economists and investors now put the odds of a September cut at roughly 80% according to the CME Group’s FedWatch tool. About 20% expect rates to remain unchanged.
Hiring sputters as Wall Street eyes rate cut
The urgency stems in large part from a cooling labor market.
The last job report showed a significant slowdown in hiring. A lower rate environment could help restore confidence among companies, particularly among small businesses, whose margins have been squeezed by a high-interest rate environment and tariffs.
Powell’s speech on Friday is expected to focus on that delicate balance: supporting a job market that’s losing steam while still keeping inflation in check.
Ultimately, the Fed’s decision will hinge on fresh data in the coming weeks, including next week’s inflation report, the following Friday’s jobs numbers, and Consumer Price Index data ahead of the Sept. 17 policy meeting.
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Trump demands Fed governor step down
Trump has been critical of Powell for being “too slow” to cut rates, and he’s now calling on Fed governor Lisa Cook to resign after one of his housing officials accused Cook of mortgage fraud.
Cook has said she has “no intention of being bullied to step down,” telling the Wall Street Journal the accusations were based on a mortgage application from four years ago, before she joined the Federal Reserve. Cook added she would provide information to address any legitimate concerns.
According to the Journal, the Trump administration is considering discussing ways to fire Cook.
