Powell Pivot Strikes Again...
Second pivot in a row at a Jackson Hole re-opens the window for rate cuts
Summary
- Powell signaled that it’s probably time to resume easing. In our Jackson Hole Preview (link), we said Powell would tip his hat to the idea it is time to re-adjust rates again. We also said he would be guarded and not turn uber-dovish or pre-commit on the extent of rates calibration needed to get towards neutral (given concerns about tariff-related inflation). Since this event was generally in line with our expectations, we are keeping our house view for two cuts in 2025.
