Next week, Federal Reserve Chair Jerome Powell is expected to closely monitor economic indicators, particularly the Beige Book, as Thanksgiving liquidity sees a significant decline. Powell’s strategy, often described as “jawboning,” involves communicating the Fed’s policy intentions to influence financial markets without immediate changes in interest rates. The Beige Book, which provides insights into economic conditions across various regions, will be a key focus for Powell. The release of this report is anticipated to guide market expectations and influence investor sentiment. As Thanksgiving approaches, liquidity in the markets typically decreases, which may heighten volatility and impact trading activities. Market participants will be paying close attention to Powell’s comments and the Beige Book’s findings to gauge the Fed’s outlook on economic growth and inflation.
