Wall Street bets Powell will confirm rate cut

Wall Street is betting that Federal Reserve Chairman Powell will confirm that the Fed is about to cut interest rates at the Jackson Hole annual meeting. However, as the focus shifts from "will they cut rates" to "how much will they cut rates", stock traders may be disappointed. "If traders hear that rates are about to be cut, the stock market will react positively," said Eric Beiley, Managing Director of Wealth Management at Steward Partners Global Advisory. "If they don't hear what they want, it could trigger a massive sell-off." The market fully expects the Fed to begin cutting rates at its September meeting. But Powell is likely to be tight-lipped about the timing of the rate cut in his speech on Friday. Given his character, he is also likely to be cautious and vague about how much rates will fall after the Fed completes its easing. "The market is confident that rates will be cut soon," Beiley said. If Powell doesn't emphasize that this is the future path, it will be a huge surprise.