Federal Reserve Chair Jerome Powell will deliver the keynote address Friday at the Jackson Hole Economic Policy Symposium, where he is expected to address potential interest rate cuts.
At its most recent meeting, the Federal Reserve left the federal funds rate unchanged at a range of 4.25% to 4.50%, where it has remained since December 2024.
RELATED STORY | Federal Reserve Chair Powell to address interest rate outlook at Jackson Hole
In September 2024, the Fed cut rates from a 23-year high by 50 basis points, followed by two 25-basis-point reductions later that year.
Since President Donald Trump took office in January 2025, the Fed has not adjusted rates — a stance that has angered Trump, who argues that high interest rates are hurting the economy. Powell has countered that rates remain necessary due to elevated inflation and a stable job market.
However, earlier this month, the Bureau of Labor Statistics reported an abrupt slowdown in hiring over the summer. With these new figures, analysts will be watching Powell’s remarks for clues on whether rate cuts are coming.
While mortgage and consumer loan rates are not directly tied to the federal funds rate, changes in the rate can influence borrowing costs.
This year’s meeting in Wyoming comes at a tense moment for the central bank. The July 2025 decision to hold rates steady marked the first time in 30 years that at least two board members cast dissenting votes.
Powell’s term ends in May 2026, and President Trump has been openly courting possible replacements, making a reappointment unlikely.
Tensions deepened when President Trump called for Fed board member Lisa Cook to resign after U.S. Director of Federal Housing William Pulte accused her of mortgage fraud and sent a criminal referral letter to Attorney General Pam Bondi.
