Investors are watching for clues about the Fed's December interest rate decision and next year's policy outlook in Powell's speech on Friday.

Powell will speak this Friday to discuss interest rates and the economy. Investors and economists will be watching him closely for clues about the Fed's December rate decision and the policy outlook for 2025. In recent speeches, Powell has emphasized the balance of risks to the Fed's dual goals of stabilizing inflation and supporting maximum employment. He described the Fed's rate cut path as a "normalization" of policy. Interest rate futures market pricing on Wednesday implied a more than 80% chance of a 25 basis point rate cut at the Fed's December 17-18 meeting, with a greater chance of no rate cut. Policymakers' September update to their summary of quarterly economic projections showed a median forecast of a 1 percentage point rate cut in 2024, followed by a 1 percentage point cut in 2025. Officials will update the so-called "dot plot" at their December meeting, giving them a chance to indicate the policy path for 2025 and beyond. (Jin Shi)