Federal Reserve Chairman Jerome Powell is scheduled to deliver a speech Friday at an economic-policy conference Friday in the Jackson Hole valley of Wyoming.
The following is a selection of comments from Wall Street analysts ahead of the speech.
Marc Chandler, chief market strategist at Bannockburn Global Forex:
Although initially praised for his communication style, sentiment has turned and a recent survey showed many primary dealers frustrated by the Chair's communication. Part of the problem though is substance. For years, the argument was that the Fed was too easy, and now, the knock is it is too tight. Powell framed last month's rate cut as a midcourse correction and the minutes from the meeting seemed to show that this was a consensus understanding. The market wants the Fed to acknowledge that it is a genuine easing cycle, and it needs to get ahead of the coming recession.
Ian Shepherdson, chief U.S. economist at Pantheon Macroeconomics:
It's going to be very hard for Fed Chair Powell's Jackson Hole speech today to satisfy markets, which now expect three further rate cuts by March next year. Investors hoping that the Chair will signal that the Fed is ready to ease aggressively are likely to be disappointed. The FOMC minutes from July made it clear, as did Mr. Powell in his press conference, that policymakers viewed the first easing as a tweak, rather than the start of a cyclical downshift in rates.
Alan Ruskin, chief international strategist, Deutsche Bank:
The market is most focused on whether Chair Powell affirms that the current easing is a 'mid-cycle adjustment' as per the FOMC minutes. If there is a more vulnerable side, it is still that the market has run a little too far ahead of the Fed in its medium-term easing expectations. As such if there is any risk, it is that short-term comments are mildly USD positive. The Jackson Hole Symposium is however meant to go well beyond any short-term policy signaling, if there is any signaling at all. This year, the symposium has an appropriate catch-all topic: "Challenges for Monetary Policy". The basic framework for monetary policy is facing its greatest "challenges" since the 1970s when ironically the biggest problem was a vertical Philips curve, in contrast to the worry of today - a flat Philips curve.