Federal Reserve (Fed) Chairman Jerome Powell will be in the spotlight at the upcoming Jackson Hole economic symposium, scheduled for next week.
This annual event, organized by the Kansas City Fed, brings together global central banks to discuss key economic issues and trends.
Powell's statement, which is expected on the first day of the symposium, is particularly important because it comes between the Fed's July and September meetings, providing insight into the outlook for the United States (US) economy and potential monetary policy adjustments.
Last month, Powell hinted that if inflation and the labor market continued to ease, the Fed might consider cutting interest rates at its next meeting.
The Fed's current policy rate has been kept in the 5.25% to 5.50% range for more than a year, aimed at slowing economic growth and curbing inflation.
However, early August saw weak job market data, raising concerns among investors that the Fed's restrictive policies may push the economy into recession.
This led to speculation that the Fed could cut rates by half a percentage point as early as September.
Recent economic indicators, such as the strong retail sales figures published yesterday, have eased some of the concerns, showing that despite easing inflation, the economy remains resilient.
Investors now expect a more modest quarter-point rate cut in the near future, in line with a more measured approach from the Fed.
