The Pulse August 23, 2024

On August 23, 2024, significant economic news is being dominated by developments from the Jackson Hole Economic Policy Symposium, where Federal Reserve Chair Jerome Powell has indicated that interest rate cuts are likely to begin in September. Powell's remarks highlight that inflation is now on a sustainable path back to the Fed's 2% target, which has given the central bank more confidence to begin easing monetary policy. This decision comes as the U.S. economy continues to grow at a solid pace, and inflationary pressures have significantly decreased since the peak during the COVID-19 pandemic​(mintUPI).

In the financial markets, Powell's anticipated rate cuts have already influenced investor behavior. The yield on the 10-year Treasury has fallen, and gold prices have surged to an all-time high as markets adjust to the expected shift in monetary policy. Additionally, the S&P Global Composite PMI, released on August 22, indicated a slight contraction in economic activity, which has added to the cautious but optimistic sentiment among investors ​(NAGA).

These developments are critical as they set the stage for the economic landscape in the coming months, with the Federal Reserve's actions likely to have wide-reaching implications for both the U.S. and global economies.

Sources: https://www.upi.com/Top_News/US/2024/08/23/Fed-Powell-interest-rate-cuts/4401724424115/,https://naga.com/news-and-analysis/articles/top-economic-events-to-watch-or-august-19-august-23-2024,https://www.livemint.com/economy/latest-economy-news-today-live-updates-august-23-2024-11724353017028.html

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