Stock futures fell on Friday morning as Wall Street awaited a much-anticipated speech by Federal Reserve Chairman Jerome Powell at the US central bank’s economic symposium in Jackson Hole.
Futures tied to the S&P 500 fell 0.4 percent, while futures in the Dow Jones industrial average fell about 100 points, or 0.3 percent. Nasdaq futures fell 0.6%. The moves come after all three major averages rose in the previous session to post gains of more than 1%.
Powell is scheduled to make remarks at 10 a.m. ET in Jackson Hole, Wyoming, where central bankers from around the world gathered this week to discuss economic policy. Investors are bracing for aggressive messages from the head of the US central bank on his commitment to tighten monetary conditions and moderate inflation.
“At the Jackson Hole Symposium, Fed Chairman Powell will be on a mission to deliver a key message: ‘raise and hold,'” EY Parthenon chief economist Greg Daco said in a note Friday after a second GDP estimate which showed the US economy. contracted at a slightly lower rate than had been estimated in the previous quarter.
Federal Reserve officials have argued that upcoming policy decisions will be driven by economic data on a meeting basis – and so far, many readings on economic activity have confirmed that the central bank is likely to tighten monetary conditions further.
On Friday, data from the Bureau of Economic Analysis showed that consumer prices fell slightly last month. Headline PCE fell 0.1% between June and July with a 4.8% drop in energy prices leading the gauge lower. On a year-over-year basis, headline PCE rose 6.3% in July.
Core PCE, the Fed’s preferred measure of inflation, rose 0.1% month-on-month in July and 4.6% from a year earlier, marking the slowest annual increase since October 2021. Economists had expected core PCE will increase by 4.7% compared to the same month last year.
On Wednesday, Federal Reserve Bank of Kansas City President Esther George told Yahoo Finance in an interview that policymakers have “more work to do” on rate hikes and that the sharpest effects from recent moves they have not yet been felt.
“We’re trying to get back to 2 percent inflation as quickly as we can without hurting the economy,” George said in Jackson Hole.
“So July looked like there was some easing in those price pressures, but certainly not enough to say, we’re headed in the right direction,” he added. “So I think we’ve got more data to look at. And I think we’ve got more work to do, to start seeing that trend go away.”
Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc
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