Big Global Meeting, Powell at Jackson Hole

L . Thomas Block

As I write this weekend note, the world awaits the outcome of the high stakes meeting between President Trump and Russian President Vladimir Putin in Alaska. The stated topic is bringing peace to Ukraine, but officials from both nations have indicated that other subjects ranging from disarmament to trade could come up.

Trump introduced himself to the nation with his first book “Art of the Deal,” which set the tone for his negotiating style. In the first handful of months in his second term, he has made peacemaking and finding an end to the war in Ukraine a top priority. I will be writing more about the meeting and global implications in my regular Monday note.

Powell Speech

After a week of mixed economic data, odds continue to point to an interest-rate cut when the Federal Reserve’s rate-setting Federal Open Markets Committee (FOMC) meets in September.  This coming week, all eyes will be on the annual summer Jackson Hole meeting of Fed officials. The session is capped with an address by Fed Chair Jerome Powell on Friday morning, allowing him the opportunity to influence expectations. 

At his press conference in July, he made the point that unlike some other meetings, in September they will have two months of data to review as the August reports will be issued prior to the FOMC decision.

At the last meeting, two Committee Members voted to cut rates at the upcoming meeting. If the Senate acts quickly, there could be a new member. Stephen Miran, who is currently the chair of the White House Council of Economic Advisors, is expected to be a vote to cut rates. There are likely to be headlines coming out of the meetings during the week leading up to the Friday speech on rate-related topics that are discussed at the Jackson Hole conclave.

Disclosures (show)