By Ann Saphir, Howard Schneider and Trevor Hunnicutt
JACKSON HOLE, Wyo., Aug 23 (Reuters) - When Federal ReserveChair Jerome Powell speaks in Jackson Hole, Wyoming, on Friday,traders will comb through his remarks for clues on whether theU.S. central bank will deliver more rate cuts this year.
They may be disappointed.
For all his reputation as the most plain-spoken person torun the U.S. central bank in decades, if not ever, Powell may bereluctant in his remarks to fellow central bankers at thisyear's Kansas City Fed economic symposium to say much aboutwhere rates will go. The reason: he may not actually know, anddoes not want to get locked in.
Fellow Fed policymakers, even those who supported July'srate cut, are signaling reluctance to do more, with PhiladelphiaFed chief Patrick Harker calling for a wait-and-see approach andDallas Fed chief Robert Kaplan saying he is "open minded" butwould "like to avoid having to take further action."
Since the Fed cut rates in July, the U.S. economic picturehas darkened.
New threats by President Donald Trump to impose additionaltariffs on China, and then a decision to defer some of those newtaxes until December, are boosting already heighteneduncertainty for businesses.
U.S. factory activity is on the decline.
Globally, dozens of central banks are cutting rates and someeconomies look poised to fall into recession.
Finally, in a signal that investors are increasingly worriedabout a U.S. recession, yields on 2-year Treasuries sank belowthose 10-year debt on Thursday in yet another "yield curveinversion."
At the same time, labor markets remain strong and consumerscontinue to spend at stores and online.
Part of the reason the yield curve inverted is because theU.S. economy remains so much stronger than much of Europe:investors would rather have "safe" U.S. Treasuries, even withtheir dropping yields, than say, German bonds with a negativeyield. [For a graphic, see https://tmsnrt.rs/2NqdyFy]
Beyond the conflicting economic data, dire market signalsand dissent from within the Fed, Powell may also want to lay lowto avoid attracting even more vitriol than he already has as thefirst Fed chief to be publicly called "clueless" by thepresident who appointed him.
"The Economy is doing really well. The Federal Reserve caneasily make it Record Setting!," Trump said on Twitter onThursday. "Be early (for a change), not late. Let America winbig, rather than just win!"
Even if Powell sticks to a set piece, characterizing lastmonth's move as a "mid-cycle" adjustment and preserving hisoptions going forward, he could still disappoint markets andcourt even more turbulence.
Investors though, have high hopes that the Fed willstimulate the economy, placing overwhelming bets that thecentral bank will lower borrowing costs again at its Sept. 17-18policy meeting.
(Reporting by Ann Saphir, Howard Schneider and TrevorHunnicutt; Editing by Dan Grebler)