Wall Street Pares Interest Rate Cut Expectations Ahead of Powell’s Jackson Hole Speech

‘I think we’ve got some work to do,’ Kansas City Fed President Jeffrey Schmid said.

8/22/2025|Updated: 8/22/2025

Investors pared their interest rate cut expectations ahead of Federal Reserve Chair Jerome Powell’s speech at the annual Jackson Hole retreat.

New CME FedWatch Tool data show the futures markets now assign a 74 percent probability to a quarter-point reduction in the federal funds rate—a key benchmark for borrowing costs that stands in a target range of 4.25 and 4.5 percent—at the September policy meeting.

Andrew Moran has been writing about business, economics, and finance for more than a decade. He is the author of “The War on Cash.”