Jerome Powell, the Chair of the Federal Reserve (FRB), is scheduled to deliver a speech at the economic symposium hosted by the Federal Reserve Bank of Kansas City (Jackson Hole Symposium). According to the minutes of the Federal Open Market Committee (FOMC) meeting held on July 25-26, released the previous week, most participants recognized that inflation remains significantly above the committee’s longer-run goal, and labor market tightness persists. As a result, there is a continuing awareness among most participants of the significant upside risks to inflation that could necessitate further tightening of monetary policy. If Powell, in his speech, emphasizes a strong concern about the upside risks to inflation, expectations of prolonged monetary tightening by the Federal Reserve could spread, potentially leading to the strengthening of the dollar.
Today’s focus is on the post-speech reaction of the USD following Powell’s address.
