Market Outlook Ahead of Powell’s Jackson Hole Speech and Trump’s Remarks
Today marks the opening of the Jackson Hole Economic Symposium with a highly anticipated speech by Federal Reserve Chair Jerome Powell at 5:00 PM Cairo time. Global markets will be closely watching his remarks, especially since the Fed has kept interest rates unchanged for nearly eight months. The key focus will be whether Powell hints at an upcoming rate cut or maintains a cautious stance. Any signal of easing could pressure the US dollar and Treasury yields while supporting gold and equities.
At the same time, political tensions are heating up as the White House increases pressure on the Fed. President Donald Trump has openly expressed his desire to remove Powell for resisting rapid rate cuts. This raises serious questions about the independence of the Federal Reserve, which has historically been a cornerstone of investor confidence. Any challenge to that independence could increase market risk and fuel greater volatility in currency and equity trading.
Shortly after Powell’s address, markets await a speech by Trump at 6:00 PM Cairo time. He is widely expected to renew his calls for immediate rate cuts and may deliver direct criticism of the Fed. This back-to-back sequence of remarks has the potential to trigger sharp short-term market moves, making it essential for traders to exercise caution, reduce leverage, and closely monitor the dollar and US yields in the minutes following each speech.
