Today investors’ attention is on the symposium in Jackson Hole, where Jerome Powell, Federal Reserve Chief, is expected to speak about the central bank’s plans for the US economy.
The speech will begin at 14:00 GMT and is likely to touch on the subject of interest rate cuts. After the Federal Reserve implemented the first rate decrease in decades just recently, investors began speculating that there will be further adjustments. Nevertheless, the minutes from the Fed meeting in July did not offer any basis for that. Now analysts have to mind Powell’s words and look for any further hints in his speech.
Furthermore, the markets are also waiting for a report on oil rigs in the United States. Last week’s data showed a decrease in the rig count, but this week’s oil reserves were higher than expected.
In general, oil prices have been decreasing for a while due to growing production and shrinking demand. However, the European Union, China, and perhaps even the United States are set to soften their monetary policy, and this could mean an improved economic outlook and more demand for oil, which would in turn help prices stabilize.
