Fed Chair Powell to face most anticipated interview with David Rubenstein at the Economic Club of Washington today

Jerome H. Powell, Chair of the Board of Governors of the Federal Reserve System will be speaking at the Economic Club of Washington today. David Rubenstein will interview US Fed chief Jerome Powell on Monday, July 15, 2024 at 11:00 a.m. ET. Rubenstein is Co-Founder and Co-Chairman of the Carlyle Board (founded in 1987). From 1997 through 2005, Powell was a partner at The Carlyle Group.

“The Chairman of the Federal Reserve, Jerome Powell, is about to face one of his most anticipated interviews. Powell will be interviewed by renowned investor and philanthropist David Rubenstein at the prestigious Economic Club of Washington, DC.

Expectations are high not only for Powell’s responses but also for the Q&A session scheduled after the interview, offering a unique opportunity to gain insights into the central bank’s perspectives at a critical moment for the global economy,” says Antonio Ernesto Di Giacomo – Market Analyst Latam at xs.com

With inflation approaching its 2% target and growing concerns about how long the job market can remain strong with the Fed’s foot on the economic brake, the Fed may use the final days to either signal that rate cuts are imminent or explain why recent data does not warrant a shift to looser monetary policy.

Policymakers are unlikely to cut the benchmark interest rate from its current range of 5.25% to 5.5%, which has been in place since July 2023. However, recent weak inflation figures may cause them to revise their policy statement in a way that indicates a likely rate drop at the next meeting in September.

“Powell’s upcoming interview with Rubenstein will be an important occasion for the markets and the general public to gain deeper insights into the Federal Reserve Chairman’s strategies and thoughts. The subsequent Q&A session is expected to address key issues affecting the US economy and the global economic landscape,” adds Antonio.

Weak June inflation data has prompted investors to boost the estimated likelihood of a September cut to over 90%. However, before US CPI June data came in, Powell told US legislators that “more good data” on inflation would pave the road for lower borrowing costs, but he did not give a timetable for making a decision.

“Jerome Powell’s interview with David Rubenstein promises to be a highly relevant event, offering a platform to discuss the Federal Reserve’s current challenges and strategies. Powell’s words and decisions will be crucial in guiding monetary policy and ensuring long-term economic stability as the economy navigates turbulent waters. Powell’s caution and measured optimism underscore the complexity of the current economic environment and the need for prudent and adaptive management by the central bank,” says Antonio.

The Fed FOMC meeting is scheduled for July 30-31, and the black-out days for the Fed officials begin this Saturday. So what Fed officials say this week will be closely followed by market participants.

This week’s speakers include Fed Governor Adriana Kugler on Tuesday afternoon, Fed Governor Chris Waller on Wednesday morning, and New York Fed President John Williams on Friday. Richmond Fed President Thomas Barkin, who currently votes on interest rate decisions, will also speak Wednesday morning.