Fed Chair Jerome Powell Could Move Markets With His Speech On Inflation Wednesday Afternoon: What You Need To Know

Zinger Key Points
  • Jerome Powell is set to give a speech on the economic outlook, inflation and the labor market Wednesday afternoon.
  • Investors will be looking for clues about the Federal Reserve's next moves in its fight against inflation.
Fed Chair Jerome Powell Could Move Markets With His Speech On Inflation Wednesday Afternoon: What You Need To Know

Investors will be looking for clues about the Federal Reserve's next moves in its fight against inflation when Fed Chair Jerome Powell speaks Wednesday afternoon.

What To Know: Powell is set to give a speech on the economic outlook, inflation and the labor market at the Brookings Institution in Washington, D.C. Wednesday at 1:30 p.m. ET. 

The Fed Chair is expected to provide further insight into the central bank’s current thinking on future rate hikes.

Why It Matters: The Fed's final meeting of the year is slated for mid-December. Most expect the central bank to opt for a smaller 0.5% rate increase, following an aggressive series of four consecutive 0.75% rate hikes

On Tuesday, Wharton Professor of Finance Jeremy Siegel laid out expectations for the Fed's upcoming meeting on Dec. 14.

"I do expect the 50 basis points ... I really hope that they really just pause after that," Siegel said. 

Related Link: Wharton Professor Jeremy Siegel Says 2023 Recession Odds 'Virtually 100%' If The Fed Doesn't Pivot: Here's What Needs To Happen

The Wharton Professor anticipates that improving price data will steer the Fed away from its 0.75% rate hike course in December. 

"I think they're going to pivot once they see the weakness in the data come through," he said.

Any sign of a pivot from Powell on future rate adjustments could push the SPDR S&P 500 SPY significantly higher.

SPY Price Action: The SPY was up 0.02% at $395.30 ahead of Powell's speech, according to Benzinga Pro.

Photo: courtesy of the Federal Reserve.

Posted In: Jeremy SiegelJerome PowellNewsEventsEcon #sEconomicsFederal Reserve