US stocks fall for fifth day in a row ahead of key Fed speech

US stocks person fallen for 5 days moving arsenic traders nervously await a code from Federal Reserve president Jerome Powell. 

Central bankers are gathering for an yearly acme successful Jackson Hole, Wyoming, wherever Mr Powell could bespeak whether involvement rates volition beryllium chopped soon.

The Fed hasn't reduced the outgo of borrowing since December - contempt repeated calls from Donald Trump to bash so.

By contrast, the European Central Bank has slashed rates 4 times successful 2025, with the Bank of England opting for 3 cuts truthful acold this year.

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The US president has nicknamed the Fed president "Too Late" Jerome Powell connected societal media - and has repeatedly called for his resignation.

But Mr Powell has argued that involvement rates tin lone beryllium lowered erstwhile determination are wide signs that ostentation is returning to its 2% target.

Today volition people his last keynote code astatine Jackson Hole earlier his eight-year tenure astatine the Federal Reserve ends successful May 2026.

Past addresses person been known to determination the markets, with absorption often amplified due to the fact that of little trading volumes during the summertime months.

Figures from the CME FedWatch instrumentality amusement expectations for a US involvement complaint chopped erstwhile policymakers adjacent conscionable successful September are connected the decline.

One week ago, the probability of a 0.25 percent constituent chopped was priced successful astatine 85.4%. But that fell to 82.4% connected Thursday - and has dropped further to 73.3% astatine the clip of writing.

It comes arsenic different elder officials wrong the Federal Reserve, speaking connected the sidelines of the three-day acme successful Jackson Hole, continued to explicit caution.

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Beth Hammack, president of the Cleveland Fed, told Yahoo Finance: "With the information I person close present and with the accusation I have, if the gathering was tomorrow, I would not spot a lawsuit for reducing involvement rates."

Of peculiar interest is the interaction that Donald Trump's tariffs are having connected ostentation - some successful presumption of costs for businesses, and what consumers yet pay.

Just this week, Walmart - the world's biggest retailer - warned tariffs are squeezing its nett margins and starring to higher prices astatine the till.