Fed's Powell may open the door to another rate hike in Jackson Hole speech

foxbusiness.com:

Potomac Wealth Advisors President Mark Avallone discusses whether the stock market rally will last after CPI data showed inflation slowed again in June on 'Varney & Co.' 

All eyes will be on Federal Reserve Chair Jerome Powell when he delivers the keynote speech at the central bank's summer symposium in Jackson Hole, Wyoming, on Friday.

Just one year ago, when Powell spoke during this same time, he sent the stock market careening with warnings of economic «pain» that might result from the Fed's relentless fight against inflation.

«While higher interest rates, slower growth and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses,» he said. «These are the unfortunate costs of reducing inflation. But a failure to restore price stability would mean far greater pain.»

Instead, inflation has shown mostly steady signs of declining, falling from a peak of 9.1% to 3.2% over the past year – even as the labor market has remained surprisingly resilient. 

MOODY'S DOWNGRADES US BANKS, WARNS OF POSSIBLE CUTS TO MAJOR LENDERS

Federal Reserve Chairman Jerome Powell leaves the reception dinner at the Jackson Hole economic symposium in Moran, Wyoming, on Aug. 25, 2022. (Photographer: David Paul Morris/Bloomberg via Getty Images / Getty Images)

Now, upon Powell's return to the annual consort of central bankers in the Wyoming resort town, investors will be closely analyzing his speech clues about what comes next in the Fed's inflation fight. The Fed chief may disappoint onlookers who are hoping for signs that the aggressive tightening campaign is finally coming to an end. 

«Powell will leave the door open for another rate hike, and [repeat that] future decisions will remain