WSJ What’s News Fed Signals a Key Policy U-Turn
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Aug 22, 2025 Jerome Powell is poised to announce a major policy shift at the Jackson Hole symposium, aiming to address concerns over inflation and employment. The discussion includes contrasting views on interest rates from Fed leaders and the Trump administration's potential investment strategies in tech. Additionally, new parents are spotlighted as they navigate unexpected financial burdens while raising children. The podcast also shares creative money-saving hacks, like babysitting swaps and buying second-hand gear, to help families manage their budgets.
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Fed Revises 2020 Framework
- The Fed is rethinking 2020 framework changes because the macro environment has shifted from low inflation and low growth to a very different reality.
- The review may drop the prior flexibility that let inflation run above target and the asymmetry on focusing mainly on high unemployment.
Jackson Hole Holds Rate-Cut Signals
- Markets await whether Powell will signal a near-term rate cut or remain data dependent at Jackson Hole.
- Fed guidance likely hinges on whether recent data show enough labor-market weakness to justify easing.
Fed Officials Split On Labor Health
- Fed officials disagree on the labour market, complicating the decision on cuts.
- Cleveland Fed's Beth Hammock sees the market as strong, while Boston's Susan Collins is open to cutting if weakness emerges.