Daijiworld Media Network – Washington

Washington, Aug 17: A crucial week lies ahead for the US Federal Reserve and central banks worldwide as the Kansas City Fed’s annual Economic Policy Symposium opens Thursday in Jackson Hole, Wyoming. All eyes are on Fed Chair Jerome Powell, who is expected to unveil the central bank’s updated policy framework on Friday, outlining its approach to balancing inflation and employment goals.

Powell’s remarks could also provide hints about the Fed’s stance at its September policy meeting. So far this year, the Fed has held interest rates steady, waiting to gauge the full impact of the Trump administration’s tariffs. With inflation still running above the Fed’s 2% target and signs of a slowdown in the labor market, policymakers remain divided on whether to resume rate cuts.

“Powell has the opportunity to settle the speculation,” Bloomberg economists noted, adding that unlike last year, when he telegraphed rate cuts at Jackson Hole, this time he may be more cautious.

The Jackson Hole gathering, which draws central bankers from across the globe, also provides a platform for Powell’s peers to signal support for Fed independence amid persistent criticism from President Donald Trump.

Global markets will be watching closely. In Asia, the Reserve Bank of New Zealand is widely expected to cut rates to support a weakening labor market, while Bank Indonesia and the People’s Bank of China are likely to hold steady. Across Europe, the UK’s inflation data will be closely tracked as it edges toward a projected 4% peak, while ECB President Christine Lagarde’s remarks in Geneva are expected to guide sentiment.

In North America, US housing data will shed light on the impact of borrowing costs, while Canada’s inflation and retail sales figures could shape the Bank of Canada’s September decision. Latin American economies including Chile, Brazil, Argentina, and Mexico will also release key growth and inflation updates.

As Powell steps up to address the world’s most influential central banking forum, his words could set the direction not only for the Fed’s rate path but also for global markets navigating inflation, trade tensions, and slowing growth.