FT News Briefing What to expect from Jay Powell’s Jackson Hole speech
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Aug 20, 2025 US tech stocks face a downturn as investor confidence in AI wavers. Federal Reserve Chair Jay Powell's upcoming speech at the Jackson Hole symposium is under significant scrutiny, with economic uncertainties and political pressures looming large. Meanwhile, Novo Nordisk struggles to maintain its lead in the weight loss market amid fierce competition, while also navigating recent pricing strategies. In a surprising twist, collectible plush toys, Labubus, soar in popularity, showcasing an unexpected trend in market dynamics.
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The AI Jitters
- AI hype cooled after tech-heavy indexes swung down and OpenAI's CEO warned of a possible bubble.
- An MIT branch found most organisations saw no return from generative AI investments, fuelling sell-offs.
Why Jackson Hole Matters
- Jackson Hole is the central banking world's key forum for reading policymakers' views and likely rate moves.
- Fed chair speeches there often signal the next direction for interest rates and framework changes.
Powell's Difficult Balancing Act
- Jay Powell faces conflicting signals: internal Fed dissent and weakening labour data complicate policy choices.
- That mix makes it hard to predict whether the Fed will cut rates soon despite pressure to ease.