Here's What Jerome Powell Will Say At Jackson Hole, According To Goldman

What was already a difficult task for J-Powell who leads off Friday's J-Hole symposium with a closely watched speech at 10am (webcast here), became even more complex when in addition to red hot inflation, today's data confirmed that the housing market is crashing faster than expected, while the US service economy remains mired in deep recession, leaving the Fed chairman trapped: does he come out as hawkish and warn of a 75bps hike, making the recession even worse, or does he stay the somewhat dovish FOMC course, which however would send stocks shooting higher and undo all the financial condition tightening observed in recent months, while boosting inflation further.

Really sucks to be ole Jerome right now

— zerohedge (@zerohedge) August 23, 2022

While nobody knows what the Fed chair will say, the one bank that probably has some clue is the one that has spawned more central bankers than any other place on earth: Goldman Sachs.