Investors hope Powell’s speech offers clarity. But will it?

WASHINGTON — Against the backdrop of a vulnerable economy, Federal Reserve Chairman Jerome Powell takes centre stage Friday with the financial world seeking clarity on whether last month’s first Fed rate cut in a decade likely marked the start of a period of easier credit.

The confusion has only heightened in the days leading to the annual gathering of global central bankers in Jackson Hole, Wyoming, at which Powell will give the keynote address.

Investors are looking for a clearer signal from Powell that he and other members of the Fed’s interest rate committee support further rate cuts to counter a slowing global economy and calm turbulent markets.

Martin Crutsinger, The Associated Press