Wall Street analysts react to Powell's dovish Jackson Hole speech
Federal Reserve Chair Jerome Powell's speech at the Jackson Hole symposium sparked varied reactions from Wall Street analysts, all noting a dovish tone and a potential shift in the Fed's approach to monetary policy.described Powell's remarks as"bullish-dovish," highlighting his declaration that"the time has come for policy to adjust."
Evercore said Powell's discussion pointed towards a series of 25 basis point rate cuts but also left open the possibility of faster moves if necessary. They interpreted his comments as a sign that the Fed is still aiming for a"soft landing" and is prepared to act aggressively if the labor market weakens further.echoed this sentiment, stating that Powell gave"the clearest indication yet" that the Fed is ready to begin dialing back policy restraint.
UBS expects 25 bp rate cuts at each of the three remaining Federal Open Market Committee meetings this year, consistent with Powell's indication that the Fed believes it can achieve both 2% inflation and a strong labor market with an"appropriate" pace of easing.also described the speech as dovish, predicting a 25bp rate cut at the Fed's September meeting.
While they expect a 25 bp cut in September, they suggested that a 50 bp cut could be on the table if the upcoming employment report shows significant weakness.Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors.
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