Federal Reserve Chair Jerome Powell's upcoming speech at Jackson Hole is eagerly awaited, especially in the context of last year's focus on combating inflation. According to Goldman Sachs, this year's speech is expected to tread familiar ground, albeit with some critical updates.

1. Persistent Focus on Inflation:

   • The Federal Reserve remains concerned about bringing inflation back down to its target level. Powell’s speech is likely to elaborate on this ongoing focus.

2. A More Reassuring Backdrop:

   • Unlike last year, when Powell warned of the 'pain' that would be involved in reducing inflation, the current economic climate is significantly more reassuring. The possibility of a soft landing—i.e., reducing inflation without causing a recession—seems much more attainable now.

3. Commitment to See the Job Through:

   • Goldman Sachs anticipates that Powell will send a message of commitment. The Fed is determined to address inflation effectively, and the speech will likely underscore this resolve.

Conclusion:
The stage is set for a pivotal speech by Powell at Jackson Hole. Market participants are keen to gauge how the Federal Reserve views the current economic conditions, particularly around inflation. This year's speech could signal a more confident and reassuring stance from the Fed, which may have far-reaching implications for markets.