BlockBeats News, August 28th, Morgan Stanley's Chief US Economist Michael Gapen and Global Macro Strategy Head Matthew Hornbach expect that Fed Chair Powell's speech at the Jackson Hole symposium may not provide much short-term interest rate guidance. Powell has previously advocated for reduced Fed communication and forward guidance, so he is unlikely to focus on the September meeting decision, December interest rate level, number of rate hikes or cuts for the year, and short-term balance sheet policy.

Morgan Stanley believes that Powell may use this speech to outline a longer-term policy direction, involving Fed's balance sheet, inflation framework, communication approach, AI and productivity, and US economic data quality. These topics align with several working groups established by Powell earlier.

Morgan Stanley expects that the focus of this speech may not be on telegraphing the September rate decision but rather on Powell systematically outlining for the first time where he hopes to take the Fed.