Rates traders ripe for disappointment, live from Jackson Hole

With stocks and currencies across the developing economies on the retreat, the Federal Reserve chairman Powell's(pic) address at the Kansas Fed’s annual Jackson Hole gathering on Friday will be key to gauging whether US policy makers will add to July’s so-called hawkish rate cut.

NEW YORK: Rates traders are gearing up for a keynote speech from Federal Reserve Chairman Jerome Powell in Jackson Hole on Friday that could be wildly out of tune with their expectations.

Futures markets are calling for the Fed to cut its key policy rate at least 50 basis points by year-end, and more than likely 75. Investors aren’t expecting great detail on the Fed’s plans for interest rates from its marquee annual event in Wyoming, but it’s widely expected that Powell will use the stage to signal more easing.