Don’t expect Powell to promise a 50bp cut in his Jackson Hole speech: Natixis

Don’t expect US Federal Reserve Chairman Jerome Powell to promise a 50 basis point (bp) cut in his speech at the Federal Reserve Bank of Kansas City’s Jackson Hole symposium this Friday. 

Instead, investors should expect Powell to talk about the “shifting balance of risks” while giving a “tacit nod” to the commencement of the easing cycle come September, says Jack Janasiewicz, portfolio manager and lead portfolio strategist at Natixis Investment Managers Solutions. “Also, expect him to continue to lean on data dependency, giving the Fed further optionality to move more aggressively should the data begin to weaken at a faster pace.”