The Future Path of U.S. Interest Rates and the Economic Puzzle (Part 1): Trump Attempts to Control the Federal Reserve
I. Policy Shift Following the Jackson Hole Symposium At the 2025 Jackson Hole Symposium, the Federal Reserve made significant adjustments to its interest rate policy, addressing both the short-term path and the long-term monetary framework. In the short term, Powell explicitly acknowledged that current interest rates are in a restrictive range (above the neutral rate) and are already dampening economic growth, effectively opening the door to a rate cut in September. ...