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Fed policy in focus: inflation trends, rate cuts, and market expectations

Fed policy in focus: inflation trends, rate cuts, and market expectations

Update: 2025-08-19
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All eyes are on Jackson Hole this week as investors digest recent economic data and look ahead to the Fed’s next moves.

Mindy Gudmundson, Institutional Portfolio Manager with RBC BlueBay’s U.S. Fixed Income team, breaks down the latest inflation data, rate cut expectations, and what to watch ahead of Chair Powell’s Jackson Hole speech.

  • Headline inflation dipped to 2.7%, nearing the Fed’s target, but core CPI rose to 3.1%, keeping inflation risks in focus.
  • Markets expect a 25 bps cut in September, with more cuts likely in the months ahead.
  • Chair Powell’s speech in Jackson Hole is expected to provide clarity on the timeline and scope of policy easing.

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Fed policy in focus: inflation trends, rate cuts, and market expectations

Fed policy in focus: inflation trends, rate cuts, and market expectations