David McNamara: US fed chair Jerome Powell throws in the towel on rate cuts
Federal Reserve chairman Jerome Powell, left, at the Jackson Hole Economic Policy Symposium in Moran, Wyoming, last weekend. His much-anticipated Jackson Hole speech delivered the expected about turn in his thinking on rate cuts. Picture: AP /Amber Baesler
The much-anticipated Jackson Hole speech by US Federal Reserve chair Jay Powell delivered the expected about turn in his thinking on rate cuts. Following a summer of fence-sitting by Mr Powell, as he played for time as US tariff policy evolved, the Fed chair gave a relatively dovish speech at the annual central bank conference.
The dollar had been quite sensitive to incoming news in the days preceding Mr Powell’s comments. The currency generated some upward momentum in the lead-up to Friday’s speech, as better than expected US macro data, some less dovish Fed speaker’s comments, and an associated firming in rate expectations provided support to the currency.
