The Latest Breaking News from Jackson Hole

Investment bank Morgan Stanley says that the Federal Reserve will begin cutting interest rates starting in September, reversing its prior views of the Fed choosing to hold rates steady through March 2026.

At the central bank conference in Jackson Hole on Friday, Federal Reserve Chair Jerome Powell warned that a new set of policy-driven shocks is reshaping the U.S. outlook, underscoring how “significantly higher tariffs” are remaking global trade while tighter immigration policy has produced an “abrupt slowdown in labor force growth.”

Markets still expect a rate cut next month, but odds have fallen to around 70%.

September S&P 500 E-Mini futures (ESU25) are trending up +0.26% this morning, attempting to snap a five-session losing streak, with focus squarely on a highly anticipated speech from Federal Reserve Chair Jerome Powell.

Editor’s Note: The future prices of benchmark tracking ETFs, and the lede were updated in the story.

Chair of the Federal Reserve says US economy is facing ‘challenging situation’ as inflation risks persist and job market cools

Powell – whom Trump has urged to resign – addressed ‘challenging’ dichotomy of economic risks, including tariffs

BitMEX co-founder Arthur Hayes sparked debate on Thursday ahead of Federal Reserve Chair Jerome Powell‘s pivotal Jackson Hole speech, declaring he wants “no cut” in interest rates to force President Donald Trump into unconventional fiscal measures.

Asian markets were mostly up Friday morning ahead of a pivotal speech by the US central bank chief, expected to shed light on possible interest rate cuts in the world's top economy.