Powell's critical Jackson Hole speech expected

Fed Chair Jerome Powell will speak at the Jackson Hole Economic Policy Symposium today at 17:05 Turkish time. In his speech, which investors will watch closely, Powell is expected to provide information about the Fed's remaining steps in the fight against inflation in the upcoming period and to demonstrate his determination to reduce inflation to the 2 percent target. Jackson Hole meetings have been the scene of statements from Fed chairmen that have shaken global markets in the past. Powell's speech, although not as shocking, comes at a time when Fed officials are unclear about how much further tightening is needed to reduce inflation and what effect the increases to date have had on the economy. Fed members, who have focused on increasing interest rates until inflation is reduced, are now divided on how much more they should do as inflation begins to cool. Powell will also likely use his Jackson Hole speech to explain how he will determine whether interest rates will increase further and when interest rates should be reduced. “He will caution against easing too early,” said Donald Kohn, a former Fed vice chairman. “That will be a theme here, I think. It would be really useful for him to explain what he means by data dependency, by suppressing the very strong reaction that markets have to every single piece of data.”