The Fed will host its Jackson Hole Economic Policy Symposium next week, beginning on August 21. The annual event is attended by central bankers and policymakers around the world and could provide clues on where the federal funds rate is headed. This year’s theme is “Labor Markets in Transition: Demographics, Productivity, and Macroeconomic Policy.”
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Fed Chair Jerome Powell will take the stage on August 22, providing insight on the economic outlook and the Fed’s policy framework.
Rate Cut Odds Drop to 89.1%
On Wednesday, the odds of a rate cut during the September 16-17 Federal Open Market Committee (FOMC) meeting surged to as high as 99.9%, according to CME’s FedWatch tool. After being stuck at 0% for several weeks, the odds of a 50 bps rate cut ran up to as high as 5.7%.
The odds of a 50 bps cut have now reverted back to 0%, while the chances of a 25 bps cut remain the overwhelming favorite at 89.1%. Concerning economic data points, like July’s Producer Price Index (PPI) and core Consumer Price Index (CPI) readings, have dampened the odds.
Track the FOMC and other key events with TipRanks’ Economic Calendar.
