Global Financial and Emerging Markets Weekly Update

August 22, 2025

Quote of the Week: “With policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance” Fed Chair Jay Powell

In the Shadow of the Grand Tetons: the Annual Policy Symposium hosted by the Kansas City Federal Reserve Bank is meeting July 21-23 in Jackson Hole Wyoming. The symposium is a gathering of the A-List global monetary policy practitioners, banks, monetary policy academic gurus and analysts. All eyes this year were on Fed Chairman Jerome Powell, who will be giving his valedictory speech at the meeting. In his keynote speech, Powell moved cautiously to the camp of the doves While stating that the tariffs have pushed inflation risks to the upside, Powell focused on the downside risks facing the softening labor markets, thus indicating his support for an interest rate cut at the September 16-17 Federal Open Market Committee (FOMC) meeting.