In his keynote speech at the Jackson Hole Economic Policy Symposium on Friday, Federal Reserve Chair Jerome Powell is anticipated to discuss possible interest rate reductions.
The Federal Reserve maintained the federal funds rate at its current range of 4.25% to 4.50%, which it has maintained since December 2024, during its most recent meeting.
RELATED STORY | Powell, chair of the Federal Reserve, will speak in Jackson Hole about the forecast for interest rates.
Following two 25-basis-point rate cuts later that year, the Fed lowered rates by 50 basis points in September 2024, bringing them down from a 23-year high.
The Fed hasn’t changed interest rates since President Donald Trump took office in January 2025, which has infuriated Trump, who claims that high interest rates are harming the economy. Powell has said that high inflation and a steady labor market mean that rates are still required.
But earlier this month, the Bureau of Labor Statistics said that hiring had suddenly slowed down throughout the summer. Analysts will be keeping an eye on Powell’s comments in light of these new numbers to see if rate cuts are imminent.
Although rates for consumer loans and mortgages are not closely correlated with the federal funds rate, shifts in the rate may have an impact on borrowing expenses.
The central bank is in a precarious situation during this year’s meeting in Wyoming. For the first time in 30 years, at least two board members voted against the July 2025 decision to keep tariffs unchanged.
Powell’s term expires in May 2026, and because President Trump has been actively seeking potential successors, a reappointment is improbable.
When U.S. Director of Federal Housing William Pulte accused Lisa Cook of mortgage fraud and sent Attorney General Pam Bondi a criminal referral letter, tensions escalated and President Trump demanded that the Fed board member step down.
