Powell Seen Likely To Disappoint Wall St. On Fed Rate Cut

Wall Street overwhelmingly expects the Federal Reserve to cut rates next month, and Chairman Jerome Powell’s speech will give him a chance to hint at which direction policymakers are headed.

Wall Street expects the Fed to resume rate cuts in September. (Photo: Board of Governors of the Federal Reserve System)

But some analysts don’t think a September rate cut is guaranteed, and even those who do expect one doubt Powell will signal it at Jackson Hole, Jason Ma reported for Fortune.

All eyes will turn to Powell when he is scheduled to deliver a highly anticipated speech at a central bank conference in Jackson Hole, Wyoming.

The annual event has often served as an opportunity for policymakers to signal forthcoming rate moves.

Last year, Powell signaled a pivot to cuts, saying “the time has come for policy to adjust” and that “my confidence has grown that inflation is on a sustainable path back to 2%.”

Wall Street expects the Fed to resume rate cuts in September, after months of holding off as President Donald Trump’s tariffs ripple through the economy.

Trump and the White House have applied immense pressure on the Fed to ease, while a more dovish governor was recently appointed to the board of governors.

But Powell may avoid big hints this year. For one thing, some analysts argue a September cut is not certain because inflation remains above the Fed’s 2% target and continues to tick higher as tariffs put upward pressure on prices.