Newscasts - Powell to hint at rate cut in Friday speech, market expert predicts
21/08/2025 21:28
Click the following link to watch video: https://share.newscasts.refinitiv.com/link?entryId=1_mhaiox81&referenceId=tag:reuters.com,2025:newsml_RW886121082025RP1_930&pageId=Newscasts Source: 'Reuters - Business videos' Description: Chris Carey, portfolio manager at Carnegie Investment Counsel, believes Federal Reserve Chair Jerome Powell, in what will be a closely watched policy speech from the central bank's annual symposium in Jackson Hole, Wyoming, on Friday (Aug. 22), will "give the green light" to a September interest rate cut. Short Link: https://refini.tv/47F8iGU Video Transcript: With Fed Chair Powell's speech tomorrow at Jackson Hole, ideally, what we're looking for is understanding his thoughts with regards to monetary policy going forward, above and beyond just the September 25-basis-point cut, which is pretty much already baked in. The Fed has a bit of a unique game to be playing from the Chairman's position, which is that for the first time in quite a while, the majority of his governors aren't all on the same page with regards to which direction to take rates. In terms of whether Powell actually hints and gives the green light, if you will, within his speech that they are going to go forward and make a cut, I have a feeling that most likely he will. He might not say it, verbatim. I think the majority of stocks, especially in the homebuilder space, in the small-cap space, are relying on it. The housing market is in somewhat of a disarray, and so they need support from the Fed with regards to being able to secure a rate cut, and I think that the data does point to it. But I don't think we're going to see anything like a jumbo cut of 50 basis points as some commentators or administration officials have wanted or should I say desired.