US signals change in emphasis on interest rate policy

In this podcast, STANLIB Chief Economist, Kevin Lings, talks about Federal Reserve Chair Jerome Powell’s recent address at the Jackson Hole Symposium, where he indicates a notable shift in the Fed’s policy emphasis from managing inflation risks to addressing emerging weaknesses in the US labour market. This could signal the beginning of a new interest rate cutting cycle, with markets now pricing in a high probability of a rate reduction at the upcoming Federal Open Market Committee (FOMC) meeting. Kevin also discusses SA’s July Consumer Price Index (CPI) data, noting a significant month-on-month increase driven by electricity, water, fuel, and food prices. While core inflation remains contained, the upward trend in headline inflation raises concerns about sustained price pressures in the months ahead.
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