It’s about to be a big week for the Federal Reserve — and for anyone who geeks out over central banking.
On Thursday evening, the Kansas City Fed kicks off its annual Economic Policy Symposium in Jackson Hole, Wyoming. The picturesque mountain backdrop is just scenery though — the real spotlight will be on Fed Chair Jerome Powell. On Friday, he’s expected to pull back the curtain on the Fed’s brand-new policy framework, essentially the playbook for how the central bank plans to juggle inflation and jobs going forward.
Powell’s speech isn’t just a policy wonk’s dream. Markets will be listening closely for hints about what the Fed might do at its next meeting. So far this year, officials have kept interest rates steady, opting to see how President Trump’s trade tariffs shake out across the economy. But with inflation still running hot above the Fed’s 2% target and job growth showing signs of cooling, the debate inside the Fed has grown louder: cut rates soon, or wait it out? Powell may tip his hand on how divided the committee really is — and whether a rate cut is coming next month.
The latest batch of economic data doesn’t make the Fed’s job any easier. Core consumer prices rose the most in months, but tariff-heavy goods didn’t bite as hard as feared. At the same time, wholesale prices hinted that companies are feeling more pressure, while consumer spending looked strong despite rising nerves about inflation and employment.
“Powell has a chance to calm the chatter with his Jackson Hole remarks,” Bloomberg Economics wrote this week, noting that last year he used the same forum to signal rate cuts ahead. “This time around, circumstances are different, and we don’t think he’ll be as blunt.”
Of course, Jackson Hole isn’t just about Powell. The gathering draws central bankers and economists from around the world, making it one of the most influential networking events in global finance. With Trump repeatedly criticizing the Fed, many expect the topic of central bank independence to crop up in side conversations. Plus, economists will present fresh research papers, and a panel featuring top central bank chiefs is on the agenda.
So yes, it’s Wyoming in late summer — but for central bankers, it might as well be Davos in the mountains.
The original story by Catarina Saraiva for Bloomberg.
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