Squawk on the Street Powell's Jackson Hole Speech: What's At Stake for the Markets and Investors 8/22/25
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Aug 22, 2025 
Torsten Slok, Chief Economist at Apollo Global Management, shares his insights on the pivotal factors influencing the markets ahead of Fed Chair Jerome Powell's keynote speech. He discusses the complexities the Fed faces with inflation and employment as economic signals fluctuate. The conversation also touches on Nvidia's stock struggles amidst U.S.-China tensions, highlighting how technological advancements and global dynamics shape market movements. Slok emphasizes the crucial balance needed in interest rate policies to navigate these challenges.
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Powell Will Emphasize Flexibility
- The Fed will likely aim for maximum flexibility and let incoming data determine policy moves.
- Markets will interpret Powell's remarks through their existing biases about cuts in September.
Asymmetric Risks Shape Fed Decisions
- The Fed faces asymmetric risks on inflation and jobs and must weigh which mandate to prioritize.
- Futures show a meaningful chance of a September cut but markets will adjust as more data arrive.
Weak Jobs Make Cuts More Plausible
- The labor market has softened sharply and that weak payroll report should push some policymakers toward cuts.
- But ambiguous signals let reasonable people disagree on timing and magnitude of easing.