August 18, 2025
United States:
Powell Has Reason to Hedge Jackson Hole Signal as Data Zigzags
Jerome Powell has the ideal platform Friday to deliver a clear signal the Federal Reserve is about to resume cutting interest rates. But the economy isn’t giving him an equally clear signal that now is the time.
The Fed chair’s annual speech in Jackson Hole, Wyoming can be an opportunity to flag policy shifts. Powell used it for that purpose last year, and delivered a big cut soon after.
Europe:
Traders Boost Bets BOE Will Hold Rate at 4% for Rest of 2025
Money markets are adding to bets the Bank of England will keep interest rates on hold at 4% for the rest of this year as signs of faster inflation and a more resilient economy reduce the case for more easing.
On Monday, traders decreased wagers on another quarter-point rate cut this year, with swaps at one stage implying a less than 50% chance of such a move.
Asia:
PBOC Signals No Urgency for Rate Cuts Despite Poor Economic News
China’s central bank indicated it’s holding back from aggressively easing monetary policy with moves such as interest-rate cuts, even though the economy just recorded its worst month so far this year.
The People’s Bank of China pledged to “thoroughly” enact its “moderately loose” monetary policy while highlighting targeted support to the economy.
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