Gold Tumbles Below $4,400 on NFP Shock: Fed Easing Bets Crater, Sell on Rallies to $4,300 
RBA Expected to Hold Interest Rates at 4.35% as Markets Watch AUD/USD and ASX 200 
Indonesia Plans Higher Asset Yields to Boost Rupiah and Restore Investor Confidence 
Goldman Sachs: US Dollar Likely to Stay Strong Despite Oil Price Retreat 
BOJ Raises Interest Rates to 31-Year High, Signals Strong Focus on Inflation Risks 
BOJ Signals More Rate Hikes as Inflation Risks Rise Amid Energy Price Pressures 
South Korea Signals Possible Interest Rate Hike as Inflation Remains Elevated 
South Korea Central Bank Holds Interest Rates Steady Amid Inflation Concerns 
Kevin Warsh Faces Early Fed Test as Inflation Risks Challenge Rate-Cut Expectations 
This week, markets gathered at Jackson Hole with one query: will Jerome Powell use his last keynote on Friday to set rate cuts? Political and market pressure for help is great, given rising inflation still above target and unemployment edging to 4.3%. Investors believe Powell's remarks to be the final sign that the period of strong tightening is drawing to an end. Futures markets now give an 80–99 percent chance of a September cut.
The theme of the 2025 conference, "Labor Markets in Transition: Demographics, Productivity, and Macroeconomic Policy," prepares the groundwork. Among others, closed-door sessions with global central-bank leaders Christine Lagarde, Kazuo Ueda, and Andrew Bailey are examining how slower hiring, changing productivity, and aging workforces are changing policy decisions. Against that backdrop, the Fed has to strike a balance between a softening labor market and persistently above target inflation, even if moderating.
Historical evidence suggests that Jackson Hole rhetoric can have a significant impact on financial markets; the dovish tone last year sparked a rally. A risk-asset surge could follow Powell if he confirms expectations for immediate easing. On the other hand, a data-dependent or prudent position could disappoint and set off sell-offs. Investors will analyze every phrase for hints on the Fed's tolerance for persistent inflation, the timing of rate cuts, and its readiness to change swiftly should labor conditions worsen more.
