Federal Reserve Chair Jerome Powell is set to deliver a pivotal speech at the Jackson Hole Economic Symposium on August 22, 2025, as his term nears its end in May 2026.
The symposium, held annually in Wyoming, has been a platform for Powell to address critical economic issues.
In 2022, he emphasized combating inflation, while in 2023, he focused on supporting the labor market with lower interest rates.
This year, Powell faces conflicting economic signals, with inflation above the Fed’s 2% target and signs of a cooling job market.
Investors and the Trump administration anticipate rate cuts at the Fed’s September meeting, but Powell’s data-dependent approach may lead to a cautious stance.
Powell’s speech will address an economy showing both resilience and slowdown.
Inflation, currently about 1 percentage point above the Fed’s target, may rise further, though the Trump administration argues deregulation and productivity gains could mitigate this.
Treasury Secretary Scott Bessent recently critiqued the Fed’s data-driven approach, suggesting a forward-looking strategy akin to former Fed Chair Alan Greenspan’s in the 1990s.
Fed Governor Christopher Waller advocates for immediate rate cuts to address labor market weaknesses, contrasting colleagues who seek more data before acting.
Powell’s remarks will be scrutinized for hints on whether the Fed will adjust its 4.25%-to-4.5% policy rate toward a neutral 3%.
Former Fed Vice Chair Richard Clarida noted:
If they do cut in September there will be a lively communication discussion. What are we communicating? Is this one and wait? The first of five or six?
Powell’s ability to balance the Fed’s dual mandate of price stability and low unemployment will shape expectations.
His speech, set against the Grand Teton Mountains, concludes a tenure marked by navigating a global pandemic, aggressive rate hikes, and political pressures.
The outcome will influence markets and policy as the Fed charts its next steps.