The Shiro Copr , JAKARTA - Index Dollar AS gaining ground amid waiting for comments by Federal Reserve Chair Jerome Powell at the annual symposium The Fed at Jackson Hole.
Based on data Bloomberg , the US dollar index rose 0.1%, supported by positive US manufacturing data and comments hawkish from the Fed official.
Meanwhile, the S&P 500 index continued its decline for the fifth consecutive day as markets anticipate a 70% chance of a Federal Reserve interest rate cut in September. This probability has dropped from 90% last week.
Currently, market participants are focusing on the annual Fed symposium in Jackson Hole. Powell is scheduled to deliver his speech on Friday (8/22/2025) morning New York time. He will provide clues about the future direction of the US Central Bank's monetary policy through this opportunity.
Rajeev De Mello, Chief Investment Officer of Gama Asset Management, said ahead of Powell's speech in Jackson Hole, the market seems to be overly expecting a dovish policy change.
"we expect the Fed to remain cautious and stick to a data-based approach," said De Mello, quoted Bloomberg , Friday (8/22/2025).
Meanwhile, bond market investors are also preparing to wait for Powell's speech, hoping that the Fed will signal the start of interest rate cuts next month.
In recent years, Powell has often used this moment to convey policies that have a significant impact on the market. Investors are waiting to see whether Powell will support or reject market expectations regarding interest rate cuts.
Throughout the year, The Fed has kept interest rates steady, citing high uncertainty due to the impact of tariffs on the economy.
President Donald Trump, who often criticized the Fed, has demanded that Powell and his colleagues significantly lower interest rates, with some officials in his administration even calling for a reduction of 0.5%.
Previously, Cleveland Fed Chief Beth Hammack said she would not support a rate cut if she had to decide today. Other Fed officials who spoke on Wednesday and Thursday also expressed similar hawkish views.
While Chicago Fed Chair Austan Goolsbee said that although some recent inflation data have improved, he hopes one "dangerous" data point is just an anomaly.
Data shows an increase in unemployment benefit claims, adding to signs of labor market weakness, but the strong manufacturing purchasing managers' index has led market participants to reduce speculation about interest rate cuts. The manufacturing index recorded the fastest growth since 2022.
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