How fast will interest rates fall? Fed Chair Powell may provide clues in high-profile speech

With the Federal Reserve likely to begin cutting its benchmark interest rate next month, Chair Jerome Powell's upcoming speech at the Jackson Hole economic conference is highly anticipated for clues on future rate cuts. Powell is expected to signal growing confidence that inflation is approaching the Fed's 2% target, over two years after it peaked at a four-decade high. However, Powell may adopt a cautious tone in his remarks. Economists suggest that upcoming data, including the September 6 jobs report, will play a critical role in shaping the pace and scale of future rate reductions, whether by a typical quarter-point or a more aggressive half-point.