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Yahoo
25 minutes ago
- Yahoo
Anticipation Builds for Powell's Jackson Hole Speech in Echoes of Last Year
Key Takeaways Federal Reserve Chair Jerome Powell is set to deliver a speech laying out whether the central bank is ready to cut interest rates. Fed-watchers may feel a sense of déjà vu since this is similar to last year's Jackson Hole event, when investors watched the annual speech for clues about possible rate cuts in September. This time, the economic conditions are different, and rate cuts are considered likely but not guaranteed. As was the case last year, Wall Street will keenly watch Federal Reserve Chair Jerome Powell's speech at the Jackson Hole economic conference, looking for signs that the central bank is about to cut interest rates. Last year, he delivered, but this year could be a different story. Powell is scheduled to speak Friday at 10 a.m. Eastern Time. His speech, titled 'Economic Outlook and Framework Review,' could be anything but boring for financial markets. Powell could use the speech to discuss the Fed's long-term strategy for monetary policy, the central bank's independence, or the outlook for interest rates in the next few months. In the latter respect, the speech has similar significance to one he gave at Jackson Hole in what he said back then, and what he might say this time around: Pivot Point In 2024, as today, the economy seemed to be at a turning point. The rapid price increases of the post-pandemic era had simmered down, the job market was solid, and most forecasts called for a 'soft landing' rather than an economic crash. But then, as now, some red flags were starting to wave in the job market: a worrisome uptick in the unemployment rate sparked fears of a surge in Powell and the other members of the central bank's policy committee, the time was right for the Fed to start easing its high interest rates, which had been in place for more than a year. High rates had done their job of quelling inflation, and it was time to boost the economy with lower borrowing costs that encourage used his Jackson Hole speech to say the Fed was pivoting and would lower the fed funds rate from a two-decade high at its policy committee's next meeting. He said in very clear terms that inflation was more under control and the Fed would soon cut interest rates.'The upside risks to inflation have diminished. And the downside risks to employment have increased,' Powell said. 'The time has come for policy to adjust. The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.'The Fed went on to cut interest rates by a full percentage point over its next three meetings. Why This Time Could Be Different A year later, experts are once again worried about the health of the job market after a spate of worrisome data, and financial markets are once again looking to Powell for a hint about possible rate cuts at the September time, it's far from obvious that Powell will support rate cuts. Back in 2024, the data was pulling the Fed toward rate cuts. This time, it's pulling it in two directions: the tariff-related price hikes are starting to materialize, and the job market is showing signs of weakness. Experts have said there's a good chance Powell chooses to keep his options open instead of laying his cards on the table like he did last the eve of the speech, investors were pricing in a 74% chance the Fed will cut interest rates starting in September, down from near certainty earlier in the month, according to the CME Group's FedWatch tool. The tool forecasts rate movements based on fed funds futures trading data. Whatever Powell says Friday could drastically change those odds. Read the original article on Investopedia
Yahoo
25 minutes ago
- Yahoo
S&P 500 Gains and Losses Today: Walmart and Solar Stocks Drop; Paramount Skydance Soars
Key Takeaways The S&P 500 slid 0.4% on Thursday, Aug. 21, 2025, as investors looked ahead to key remarks from the Federal Reserve chair Friday. Shares of First Solar and other solar companies fell after President Trump said the U.S. wouldn't approve new solar or wind projects. Hewlett Packard Enterprise shares climbed after Morgan Stanley analysts upgraded the stock on optimism about AI demand. Major U.S. equities indexes lost ground Thursday amid uncertainty ahead of Friday's highly anticipated remarks from Federal Reserve Chair Jerome Powell. The S&P 500 lost 0.4%, in the fifth straight losing session for the benchmark index. The Dow and tech-heavy Nasdaq fell 0.3%. Shares of First Solar (FSLR) plunged 7%, leading losses on the S&P 500 after President Trump said the U.S. wouldn't approve solar or wind projects, citing high electricity costs in states that utilize the renewable energy technologies. Other solar stocks including Sunrun (RUN), Enphase Energy (ENPH), and SolarEdge (SEDG) also fell. Walmart (WMT) shares dropped close to 5% after the retail giant reported quarterly profits that came in below analysts' expectations. While the company grew revenue nearly 5% year-over-year and comparable store sales 4.3%, its operating income fell more than 8%. Walmart raised its outlook for the full fiscal year. Allstate (ALL) shares lost 3.3%. The drop followed a monthly report in which the insurer reported catastrophe losses of $184 million or $145 million after tax for July 2025, citing a number of wind and hail events. Paramount Skydance (PSKY) shares surged more than 14%, continuing to move like a 'meme stock.' The newly merged company last week said it acquired the programming rights to fighting league UFC. Packaging Corp of America (PKG) shares jumped over 6% and rival packing firm Smurfit WestRock (SW) moved up 4% after International Paper (IP) announced business changes including plant closures, which could lower the supply of paper materials and push prices higher for packaging materials. International Paper shares added about 2%. Hewlett Packard Enterprise (HPE) shares gained 3.7% after Morgan Stanley upgraded the company's stock to "overweight" from "equal-weight," citing optimism over growth from the firm's artificial intelligence and other products. Nordson (NDSN) shares rose 3% after the adhesives maker posted better-than-anticipated results and guidance as sales at its medical and fluid solutions unit grew. The company also announced a $500 million stock buyback plan. Dayforce (DAY) shares climbed 2.4%, extending recent gains after Thoma Bravo agreed to purchase the human resources software provider in a $12.3 billion deal. Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Hill
27 minutes ago
- The Hill
Who is Bill Pulte, the housing director going after Trump's enemies?
President Trump has been using the bully pulpit of his presidency to go after the Federal Reserve with a vengeance, and Federal Housing Finance Agency (FHFA) chief William Pulte has acted as his megaphone-in-chief throughout his pressure campaign. Pulte has lambasted Fed chair Powell in social media posts and television interviews, called for lower short-term interest rates, and exhorted Congress to probe the Fed over a cost overrun. On Wednesday, he alleged that Fed governor Lisa Cook committed mortgage fraud by designating both her Atlanta condo and her Michigan home as her primary residences. The allegation is part of a pattern. Pulte has made mortgage fraud accusations against two other top political enemies of the president, New York attorney general Letitia James and Democratic Senator Adam Schiff (Calif.). Despite the fact that Pulte's agency has nothing to do with the criminal prosecution system or the determination of U.S. monetary policy, Pulte is jumping into both of these arenas from his perch atop the agency in charge of guaranteeing mortgage loans. What is Pulte's job as head of the Federal Housing Finance Agency? Pulte oversees government-backed mortgage companies Fannie Mae and Freddie Mac, the main guarantors of mortgage credit for households. Together, they have roughly $7.5 trillion in assets and more than $100 billion in equity. He also oversees the agency's 11 federal home loan banks. Prior to the 2008 market crash, Fannie and Freddie were private companies that operated with extra regulations to keep them stable and affordable, similar to utilities. In 2008, they were nationalized into a government conservatorship, though they still make money by buying commercial loans, guaranteeing them, and selling them as securities. This is a busy time for the FHFA as the Trump administration is considering whether to re-privatize Fannie and Freddie, a move that could transform mortgage markets after 15 years under government stewardship. 'Fannie Mae and Freddie Mac are doing very well, throwing off a lot of cash, and the time would seem to be right,' Trump said in May. 'Stay tuned!' It's a fraught time in general for the U.S. housing sector, which is facing a housing shortage of between 1.5 and 5.5 million homes and is behaving sluggishly. The Trump administration announced a plan in March to sell about 625 square miles of federal suburban federal lands for new housing, but there hasn't been a significant update from the administration about that in a few months. Pulte has been going after Powell Through media appearances and social media posts, Pulte has homed in on Trump's political foes. Following Trump's relentless criticism of the Federal Reserve, Pulte has frequently blasted Fed Chair Jerome Powell, even accusing him of lying. 'Jerome Powell, again, lies to the American people,' he wrote on the social website X in July. 'This time [he is] saying that the Fed has nothing to do with housing. The Fed has everything to do with housing.' Pulte has accused Powell of strangling the housing market by keeping interest rates unnecessarily high, an argument Trump has shared when attacking the Fed chair. The Fed's overnight interbank rates affect financing levels in many parts of the economy. They tend to undergird mortgage rates, but mortgage rates much more closely track 10-year Treasury yields, which are not set by the Fed. Powell is also just one of more than a dozen Fed officials who have voted to keep interest rates steady, with some breaking from him in recent weeks. 'I'd be happy if we had a different chair,' Pulte told CNBC in a Wednesday interview. Banking experts told The Hill that the pressure campaign on the Fed from Trump's executive is unprecedented in the U.S. and that similar initiatives have only happened on a comparable scale in other countries. 'If you think of Hungary, Turkey, and India to a certain extent – there have been episodes like that,' Nicolas Véron, a senior fellow at the Peterson Institute, told The Hill. 'In the U.S., it's correct to say that since the creation of the Fed … I don't think there's been anything like this.' A flurry of mortgage fraud accusations Mortgage fraud accusations have been coming fast and furious from Pulte, aimed not just at Fed Governor Lisa Cook but at other top political opponents of the president — New York Attorney General Letitia James (D) and Sen. Adam Schiff (D-Calif.). Schiff led the first impeachment effort in the House against Trump and supported the Jan. 6 Congressional committee's investigation into the riot at the Capitol. James has sued Trump and his administration multiple times. In 2024, her office won a $454 million judgment against the president and his companies in a case alleging he lied about how much his assets were worth on financial statements. Cook said in a statement she has no intention of stepping down from her post and that she is 'gathering the accurate information to answer any legitimate questions' pertaining to her financial history. Pulte said Wednesday that it was part of his job to refer alleged cases of mortgage fraud to the Justice Department. 'If it didn't end up on my desk, I wouldn't be doing my job,' he said. Housing advocates told The Hill they want to see greater attention to social housing policy from Pulte and less attention to individual mortgage fraud claims. 'The [FHFA] can and should be the foremost vehicle for making housing affordable and protecting tenants against landlord abuses,' Tara Raghuveer, director of the Tenant Union Federation, told The Hill. 'Instead, Pulte is using his position to do favors for Trump by attacking his political enemies.' A similar background to Trump Pulte and Trump have a similar professional background. Both men come from family businesses in the real estate sector and made money in development. Pulte's grandfather founded Pulte Group, a housing construction firm that operates under the brands Pulte Homes, Centex, Del Webb, DiVosta, American West, and John Wieland Homes and Neighborhoods, according to its website. According to financial data company Whale Wisdom, Pulte Group controlled 228,296 lots in 2021, of which 109,078 were owned and 119,218 were under land option agreements. Pulte himself founded Pulte Capital Partners, an investment firm worth more than $50 million, according to his personal financial disclosure. He disclosed more than $80 million in assets related to housing, property management, or air conditioning and heating companies in his 2025 financial disclosure form. Stylistically, Trump and Pulte both have a fondness for social media, firing off posts and making bold claims about their enemies. 'Soon, unemployed,' Pulte posted on social media above a picture of Powell and Cook.
