Part 11/12:
Powell’s upcoming speech and the broader symposium are highly anticipated events that will likely define the U.S. monetary policy trajectory for years to come. The confluence of internal dissent, external political pressure, ambiguous economic signals, and demographic shifts creates a highly volatile environment.
Markets are especially sensitive to any signals regarding rate adjustments. A hint at cuts could boost equities and weaken the dollar, while a tone emphasizing caution or rate maintenance could bolster the dollar and temper market exuberance.