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Fed officials divided ahead of Powell’s Jackson Hole Speech

Aug 22, 2025, 12:05:38 PM IST

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Fed Officials Split Ahead of Jackson Hole

Federal Reserve officials appeared cautious about a September rate cut as investors awaited Chair Jerome Powell’s keynote speech at the annual Jackson Hole symposium.

Reuters

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Cleveland Fed Chief: No Case Yet

Beth Hammack said that with current data, she would not support a rate cut if the meeting were tomorrow. She emphasized keeping an “open mind” for incoming data.

Reuters

3/9

Kansas City Fed Sees No Urgency

Jeffrey Schmid said the economy is “in a really good spot” and that only very clear data would justify policy easing at this stage.

Agencies

4/9

Atlanta Fed Open but Cautious

Raphael Bostic still has a cut penciled in for this year but admitted forecasts are uncertain. He stressed flexibility rather than commitment.

ETMarkets.com

5/9

Chicago Fed Flags Inflation Risk

Austan Goolsbee called the September meeting “live” but warned that rising services inflation is a “dangerous data point” that makes cutting rates tricky.

ETMarkets.com

6/9

Markets Expect a September Cut

Futures markets put a 70% chance on a quarter-point cut next month. Goldman Sachs expects Powell to support easing, though not explicitly confirming it on Friday.

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Two-Sided Risks for the Fed

Policymakers face a dilemma: weakening jobs suggest cuts, but inflation—still above the 2% target and pressured by tariffs—argues for caution.

Reuters

8/9

Tariffs and Inflation Debate

Officials are divided on whether tariff-driven inflation is temporary or persistent. Hammack warned firms cannot hold off on price hikes indefinitely.

IANS

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Inflation Expectations at Stake

Schmid noted that lowering rates prematurely could risk feeding inflationary psychology, underscoring the Fed’s balancing act between growth and stability.(Disclaimer: This slideshow has been sourced from Reuters)