Who is Chairman Jerome Powell?
Jerome Powell’s feud with President Donald Trump makes headlines. There’s everything you need to know about the Fed Chair.
U.S. equity futures are gaining high as Federal Reserve Chair Jerome Powell waits to see if he shares his views on interest rate reductions at the annual Jackson Hole Economic Symposium of global central bankers and finance directors.
Investors may be looking for tips on Powell’s concerns about the weakness of the labour market and are waiting to see the impact of the tariffs before cutting fees again. At the last policy meeting in July, most policymakers were more interested in rising inflation than in the labour market, but before a shockingly weak July salary report.
The CME FedWatch tool, which tracks the odds that the market places on rate movements at each Fed meeting, shows the potential for a quarter-point cut at the next policy meeting in September.
At 6:10am (ET), futures tied to the Blue Chip Dow rose 0.32%, while the Broad S&P 500 futures added 0.23%, while the high-tech Nasdaq futures rose 0.16%.
However, many economists do not expect Powell to give hints on monetary policy. Instead, in Powell’s final speech at Jackson Hole, “People use the moment to solidify his legacy, rather than conveying a short, sharp message,” said Jeffrey Roach, chief economist at LPL Financial. Powell could also speak more broadly, tackling structural changes like the aging population, or highlighting the Fed’s independence with a quiet nod to President Donald Trump’s attacks.
For months, Trump has publicly denounced Powell for lowering interest rates. He called Powell’s name and threatened to fire him on suspicion of fraudulent control, presumably renovating the Fed’s headquarters.
Corporate News
- Results of Intuit for the last three months of financial year beat forecasts. However, sales for the first three months ranged between 14% and 15%, below Wall Street estimates.
- Zoom has broken second quarter estimates. It also raised a full year outlook.
- Roth Store’s second quarter results exceeded expectations. Discount retailers have also revived year-round guidance.
- Alphabet’s Google reportedly has won a six-year, $10 billion cloud contract from Meta.
- Nvidia is telling component suppliers such as Samsung Electronics Co. and Amkor Technology Inc. to stop production related to the H20 AI chip. China reportedly told local businesses to stop using Nvidia chips.
- Workday’s second quarter results exceeded estimates, but some of the company’s third quarter outlook remained below Wall Street expectations.
- Taiwan Semiconductor Manufacturing is discussing returning US government subsidies if the Trump administration asks to become shareholders, the WSJ said.
- Tesla is facing a new federal investigation after the NHTSA discovered that some of its reports to the agency are significantly delayed.
Cryptocurrency
China is considering allowing the use of yuan-supported stubcoins for the first time to boost the wider adoption of the yuan currency, Reuters reported that it cited sources familiar with the issue. This is a major reversal of its stance on digital assets and is expected to be approved by China’s national council, the story said.
Medora Lee is a money, market and personal finance reporter for USA Today. You can contact her at mjlee@usatoday.com and subscribe to our free daily money newsletter for personal finance tips and business news every Monday to Friday morning.
