The Federal Reserve chair used the Jackson Hole symposium to discuss the changing balance of risks. Markets listened for how softer hiring might affect the policy path.
Speeches add context, not decisions
Policy is set by the committee at scheduled meetings, not by one speaker at a conference.
Risk balance can change before targets are reached
Officials may respond when employment danger rises even if inflation remains above goal.
Markets translate words into probabilities
Bond and stock prices can move as traders update expected future rates.
Sources
- Federal Reserve Board, Chair Speech at Jackson Hole, August 2025.