Speaking at the annual Jackson Hole Economic Symposium, Fed Chair Jerome Powell laid the groundwork for what seems to be an inevitable rate cut in the next thirty days. While economists have debated various outcomes all year, it now appears almost certain that the Fed will lower rates. The main question remains whether the cut will be a quarter or half percent. Lowering the Fed’s target rates will reduce borrowing costs, impacting everything from new housing starts to home sales and auto demand. The market is now factoring in the expected rate cuts, along with the pace and scale at which the Fed may continue cutting rates in the coming years.
