KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Global investors are once again turning their eyes to Jackson Hole, Wyoming, where the Kansas City Fed’s annual Economic Policy Symposium runs from August 21–23. All attention is on Fed Chair Jerome Powell, who will deliver his keynote speech on Thursday, August 22 at 10:00 a.m. ET.
Why Jackson Hole Matters
This annual gathering has become a stage where central bankers signal major policy shifts. Powell’s past speeches show how powerful these moments can be:
2022: A short, blunt speech triggered a market selloff, with the S&P 500, Dow, and Nasdaq plunging 3–4% in a single day.
2023: Markets fell even before Powell spoke, with the Dow seeing its biggest one-day drop in five months.
2024: Powell’s dovish hints lifted the S&P 500 by more than 1%. The Fed followed up weeks later with a surprise 50 bps cut, starting its easing cycle.
With this track record, markets know Jackson Hole can reshape expectations in minutes.
Will Powell Signal a September Cut?
Right now, markets are pricing in a 25-basis-point cut in September as almost certain, with the possibility of another cut by year-end. Still, Powell is expected to avoid hard commitments, emphasizing that the September 17 FOMC decision depends on data — especially cooling in the labor market and signs of steady disinflation.
Analyst Expectations
Nomura: Powell may deliver a neutral message, aiming not to overfeed market speculation.
Bank of America: He could tilt hawkish, warning against aggressive easing bets.
Morgan Stanley: Powell might highlight lingering inflation risks to cool dovish hopes.
Markets will likely analyze every word, and even every pause, of his speech.
Policy Framework Review
Beyond rates, Powell may touch on the Fed’s ongoing review of its policy framework. Possible shifts include:
Moving away from flexible average inflation targeting.
Recognizing that a tight labor market can fuel inflation.
Putting more focus on supply-driven inflation shocks.
If adopted, these changes would mark a significant recalibration of how the Fed balances growth versus price stability.
What Comes Next
The next major data point will be the September 5 U.S. jobs report. This could seal the Fed’s decision for September. Some traders even floated the idea of a 50 bps cut, but after last week’s hotter-than-expected PPI numbers, that looks unlikely.
Key Takeaways
Powell’s Speech: August 22, 10 a.m. ET — the defining market moment of the summer.
Rate Outlook: A 25 bps September cut is seen as a lock, with another possible before year-end.
Analyst Split: Neutral (Nomura), hawkish (BofA), inflation-focused (Morgan Stanley).
Policy Shift: Fed may move away from its 2019 framework, rethinking inflation and labor dynamics.
Next Watch: September 5 U.S. jobs data before the Fed’s September 17 meeting.
Bottom line: Jackson Hole has a history of moving markets, and Powell’s words this week could shape U.S. monetary policy into the fall.
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