Federal Reserve Chair Jerome Powell will speak during his usual time slot in Jackson Hole, Friday morning of the event at 10 a.m.:
- Fed Chair Powell to Speak at 10 a.m. ET on August 23
Bank of America says Powell’s speech is unlikely to have much impact on the U.S. dollar. The bank’s analysts note that funds are still positioned to see a stronger dollar, which could pose a risk to the greenback. But even if Powell does speak with a dovish tone, it will be difficult for him to sound more dovish than the market expects:
- Bank of America cites markets pricing in four cuts this year
- “We do not believe Powell will push against market pricing, reserving the option of aggressive easing depending on data ahead of the September meeting.”
Bank of America appears to be on the right track toward monetary easing, and markets are seeing it. The 50 basis point rate cut in September is already starting to show:
- JPMorgan says the Fed has the green light to cut interest rates by 50 basis points in September. That’s the catalyst.
- Morgan Stanley signals 50bp rate cut by FOMC in September
Not everyone agrees, of course.
- UBS says it sees no reason for a 50 basis point rate cut by the Federal Open Market Committee in September
This article was written by Eamonn Sheridan on www.forexlive.com.
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